Emotional Investing: 7 Feelings That Quietly Sabotage Your Portfolio

2. Greed: The Insatiable Desire

Greed, the insatiable desire for more, can drive investors to take excessive risks in pursuit of higher returns. This emotion often leads to chasing after "hot stocks" or speculative investments without proper research, increasing the likelihood of significant losses. Greed can also result in holding onto winning investments for too long, hoping for even greater gains, only to see them diminish. To counteract greed, investors should establish clear investment goals and adhere to a disciplined strategy. Regularly reviewing and rebalancing one's portfolio can help maintain a balanced approach and prevent greed from dictating investment choices.