Mackattack,
What sort of investor are you, if you don't have emotions?
Intuition is an emotional reaction to a current day situation that we may experience e.g. from spin and unproven basic information that may be released to the market.
It has been said that we use our intuition to size up a situation without quite being aware of the past experiences with which we are comparing it.
For example, it has been said that stock market predictions are often intuitively based on past emotional experiences that are rekindled by similar, but slightly different, feelings in the present.
Its also been said that computers and trading systems are like using a dog whistle to point out how the computer enables us to see certain patterns that typically remain hidden - just like the dog whistle is audible to dogs, but not to humans.
Emotions are similar, as they provide us with useful signals to unconsciously anticipated events. If, for example, you keep track of your emotional reactions to what various CEOs say about their companies, and then follow the company for several months, you may discover a pattern that equates certain of your emotional reactions with the subsequent unfolding of events in that company.
I have now recognized, for example "every time I seem to try and have confidence in what GDA are saying in an announcement, something goes wrong. The share price goes south and stays south or does not do much at all.
In all GDA announcements since 2008, I find myself feeling more skeptical, everything seems to turn out "NOT OK."
This is not a general reaction shared by everyone like your self, because such emotional reactions are highly idiosyncratic, but the important point is, that one must begin to discover these highly personal reactions, and then use these reactions as warning signals that can supplement a more rational research into e.g. this company.
Emotions are evolved for a particular function, such as to keep oneself safe. So I don't see anything wrong with using your emotions to make a sensible decision or to react when something happens?
I could invest based on no emotions, but where would that get me in the long run?
There is no correct investing style, but there is generally a correct match between investing style and personality. And Yes sure, I picked a high risk stock like GDA, I realise that.
But I expect credible information to be released to the market by this company, why even bother mentioning some basic, meaningless helicopter rock sampling. It sounds quite novice to me?
Only by becoming aware of our emotional reactions can we achieve our investor style - fit. Without having access to emotions, we generally embrace someone else's theory of the best investing style, or even worse, we embrace the herd's latest fad by throwing money at GDA based on a helicopter rock sample?
Emotions have always been the driving force in peoples lives. Sometimes these emotions appear rational, other times they appear irrational. In all cases, they are subjective and available to enhance not only our life decisions, but our investment decisions, when we take the time to reflect on them?
I have had some 20 odd months to reflect on my decision as to why I purchased GDA. That was based on my emotions at the time which were all positive. My emotions are now telling me that GDA is not a good thing and I have had ample time to reflect on that based on their disclosure of info to the market.
I don't see where the momentum is with GDA and I am certainly finding it hard to see any opportunity?
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