I have set a hurdle to go through three Introduction to Investment courses before I begin investing. Moreover, I am simultaneously researching companies that I might start investing in once these specific classes are over. I have to refer to Investopedia a lot for the latter activity.
As I research companies, I have bouts of excitement when I come across a company I like. There is a voice in my head that nudges me to invest in Company X before I know much about it. I am struggling with this irrational impulse to purchase stock in Company X immediately.
I am determined not to make an investment without knowing the company I am investing in as well as its policies and missions. As one can tell, I am studying Fundamental Analysis. I am driven to know what I am investing in and to know if I am making the right choice for myself.
I fear being too excited and thoughtless enough to actually purchase a stock. I don’t want to crash and burn before I even start. I want to learn as much as I can to take, what the gurus call, a “calculated risk”.
I have come up with a satisfying way to deal with my need for activity in my investment account. When the Australian markets close on a Friday, I order the shares of Company X and this temporarily curbs my urges. On Sunday night, I retract my order and by that time, I have calmed down. I have no idea if my actions will have any long-term consequences. For all I know, I may be causing the computers to overheat. As usual, every time I write an article, I come up with a new question.
I am hoping the reader might have a better way to resist the temptation of buying stock impulsively.