Ask Colin

How do I take the emotion out of investing?

This was not a question as such, but a comment on an order to join my members website:

I deliberately stayed out of the market as I was worried I really didn't know what I was doing and would balls it up. I have created a portfolio with the idea of investing in quality companies long term but my fears were realised. There was too much noise and now I'm just left with a few spec's. I'd like to learn more and come up with a strategy to take the emotion out.


To get the most out of my teaching on investing, before you can fully appreciate what is on the members website, please read the three books I sell in this order:


Creating Real Wealth (by Michael Kemp)

Building Wealth in the Stock Market

Think Like the Great Investors


The third book will I think help a lot, but I feel you need to have read the other two first.


What I teach is very oriented to risk management, which sounds as though it is something that should resonate with you.


Investing is about assuming risk. Hence, it cannot be avoided, but it can be managed. A lot of that process is about having a clear plan and realising that most of the difficulties are in the way we think – our emotions, if you like. Ultimately you have to find an approach that suits who you are – there are limits to how much we can change the mental habits of a lifetime.


I hope this is useful.