Don’t Rely On Your Intuition
I want to tell you something that will challenge many of you.
Are you ready?
Your intuition is causing you to fail.
Your first reaction might be to resist this idea. After all,your gut feeling is always right on the money! It can always sort a good deal from a bad deal. Stop and ask yourself: is that true?
Whe it comes to intuition,we tend to only remember the times it has been right. This causes us to depend too much on it,to the point where we use it to make massive decisions,such as the ones relating to our investments.
Let’s explore further.
What is intuition?
So,what is that feeling you get inside your gut? Well, according to science,it’s your conscious and subconscious minds communicating. It’s great for primeval escape from a lion,but it’s hogwash when it comes to guiding your investment decisions
Why do investors make intuition-based decisions?
There are a few reasons that investors will (wrongly) make decisions based on their intuition:
1. They overestimate how much they really know.
2. They only use easy to find information.
3. They don’t judge objectively.
4. Complexity baffles them so they look for the easy solution.
5. They don’t know what their real goals are.
It’s A Common Mistake.
Before you laugh at the people who are guided by their gut feeling,ask yourself:
Â· Do you like to sit and think about an investment before making a decision?
Â· Do you ask your social networks about investments before making a choice?
Â· Do you rate yourself as an expert when it comes to reading the markets?
If you do any of those things,surprise! â You’re making intuition-based decisions. It’s okay! I have a solution.
How Master Your Intuition
Intuition has its place,and it’s not like you can just turn it off. So by recognising what it looks like,you can take steps to weigh an investment opportunity objectively.
Then,you need to reassess how you evaluate potential investments. Find reputable research,scrutinise your options carefully,and analyse market factors that impact your decision.
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