The head, not the heart, should rule your investing

The stock market can tricky, and you always want to invest with facts rather than with emotions. Easier said than done though—we’re all human after all. If you needed added incentive to leave emotions out of it, according to Science magazine, during financial stress, people lose 13% of their IQ, which leads to poor decision-making. Thirteen percent!

So follow the steps laid out by US News to ensure you go against the crowd and follow the ultimate rule of smart investing: buy low and sell high!

Here are the steps:

  1. Don’t focus on the minute to minute returns
  2. Don’t lose your sense of history
  3. Don’t forget how markets work
  4. Don’t love your stocks
  5. Avoid the herd mentality if you’re a venture capitalist
  6. Allow for intuition before you invest
  7. Figure out how much you can afford to lose
  8. Ask questions
  9. Take time to deliberate
  10. Bounce your investing decisions off of ‘your’ group
  11. Think ‘opposite’ when it comes to emotions
  12. Use food to train your brain
  13. Follow a formula of asset allocation and proper rebalancing

These are good steps to help you control your emotions, but if you want to gain more investing insight, head to the TAG Reports page where you can download a free analyst report, “The 7 Key Factors Driving Small-Cap Oil and Gas Valuations.” It will help illuminate key value drivers so you can identify which small-cap oil and gas companies to add to your portfolio.

Read “13 Ways to Take Emotions Out of Investing” here on US News.