Sunday 29 December 2013

Overcoming anxiety is key to investment success | GulfNews.com

Overcoming anxiety is key to investment success | GulfNews.com:

"Investing requires objective fact gathering and subjective decision making. Ideally, subjective judgments are free from the deleterious effects of emotions. One emotion plaguing investors is anxiety. Recent regional research by CFA Institute showed investors were concerned about the potential for another bubble in the GCC region, especially following Dubai’s successful bid to host Expo 2020.
Aren’t emotional responses, such as anxiety, hardwired into our brains?
The evidence strongly suggests this is correct. Much research has demonstrated that the brain’s two amygdalae, located mid-brain, are the source of instinctual, hardwired responses, like “flight or fight.” These responses are almost instantaneous and do not involve analytical judgment. Anxiety is difficult to control as it operates subliminally. Any investor that has seen an investment decline significantly in just one trading session knows this response well: panic."

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