How to control emotions to make investments more rational?

Normal people know that the probability of a coin flipping is 50-50, but the reward of $2.50 for guessing correctly is much higher than the loss of $1 for guessing incorrectly, so the successful strategy is to participate in every coin flip. However, the result of the experiment is that the completely normal group of people participated much less frequently than the group with brain damage, and the final income was also lower than that of the group with brain damage. Although they all know that the correct approach is to participate every time, if they lose money because of guessing incorrectly in the previous round, people with completely normal brains will become timid and dare not participate again.

After reading this, you may have some extreme thoughts about the author of this article or yourself. I must clarify: no one is suggesting that you should cripple your brain. But you can use some special methods to train your brain so that it can control emotions freely, put aside fear and suspicion, and drive like a car, starting or braking at any time regardless of emotions. Only in this way can you reach the “highest state” mentioned above.

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When you talk about the seven emotions and six desires, do you think of Buddhism, meditation, and sitting meditation? When you talk about brain nerves, do you think of meditation, hypnosis, and subconscious messages? There are many articles and books on this subject. I don’t need to explain it in detail here. You can learn it slowly by yourself. As long as you have confidence and perseverance, no matter what method you use, after a certain period of practice, you will definitely be able to control your emotions freely. This is like the enlightenment mentioned in Buddhism. Few people can reach this state, but after practicing, some people can enter the state of selflessness. In stock trading, this state of selflessness is buying and selling like a robot, completely operating according to signals. As the saying goes, there are stocks in your hands, but no stocks in your heart. Don’t treat money as money. Let go of everything and have no attachment.

However, you must be mentally prepared. You must have heard of stories of people going crazy while practicing qigong. Even if your brain nerves are not really damaged, your other normal life may be affected. Everyone is born with various emotions such as joy, anger, sorrow, and happiness. With these emotions, life becomes colorful. However, if you involuntarily bring the fearlessness, ruthlessness, and righteousness you have cultivated in the stock market into your daily life, your social interactions and family life may be in trouble.

Therefore, when learning to control your emotions, you must practice entering and exiting a state of concentration at the same time, knowing when to enter and when to exit a state, and being able to use it with ease. Only then can you reach the highest level of stock trading.

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