Investing is very different from gambling. Most people believe that they are investors when in fact they are really gambling. As I was rummaging through old articles that I saved, I was reminded of the difference between investing and gambling from this Canadian Moneysense article. In this article, the author highlights 11 traits that a clinical psychologist in San Francisco deemed as indicators to being a gambler. The thinking is that if you exhibit 5 or more of these you may have a gambling problem, according to his research.
1. You engage in high volume trading,where the "action" is more compelling than the objective of your trade.
2. You are constantly preoccupied with your investments.
3. You need to invest more and more money or increase your leverage to feel excited.
4. You have repeatedly tried to stop or control your market activity and failed.
5. You become restless and irritable when you try to cut down or stop investing.
6. You invest to escape problems, relieve depression, or distract yourself from painful emotions.
7. You sometimes increase your position in an investment after a loss รข€” that is, you chase your losses.
8. You have lied to conceal the extent of your involvement in the market.
9. You have committed illegal acts, such as forgery or fraud, to finance your market activity.
10. You are jeopardizing significant relationships or your job because of excessive involvement in the market.
11. You have relied on others to bail you out when you got into desperate financial situations.
Interesting list - do you exhibit any of these when thinking about your investing?
This article was written by The Dividend Guy. You may email questions or comments to me at info@thedividendguyblog.com.
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