How to control emotions to make investments more rational?

Anyone who has had a few years of stock trading experience knows that the biggest factor for success is mentality: controlling your emotions and maintaining a calm mindset is more important than any signal system or trading skills. Because for many people, it is not difficult to establish an effective trading system, but the difficult part is to eliminate all kinds of interference and implement it consistently and almost mechanically.

Humans are very emotional animals. When investing in stocks, we are easily disturbed by external factors. We either cannot resist the temptation and enter the market impulsively, or we panic and become overwhelmed, and end up getting deeper and deeper into trouble. Everyone knows that there are only a few people who can win once, draw twice, and lose seven times in the stock market. This is because there are very few people who can truly remain calm and fearless in the face of danger. Therefore, it is the highest state that stock investors yearn for.

So, what methods can we use to control our emotions and make our minds more rational? Here I will introduce some methods to you. They may not be suitable for everyone, but I hope they can inspire you to find the answer that suits you.

The Wall Street Journal once published an article citing a research report from Carnegie Mellon University, Stanford University and the University of Iowa, which said that people with certain damage to their brain nervous system can make better investment decisions.

In this experiment, one group of people was completely normal, and the other group had normal IQ and logical thinking ability, but the part of their brain that controls emotions was damaged, making them unable to experience emotions that ordinary people have, such as fear and tension. Each of the two groups received $20 and participated in a simple gambling game: toss a coin 20 times, guess the heads and tails each time, and get $2.5 if you guess correctly, and deduct $1 if you guess wrong, and you can also choose not to participate in a round of guessing.