BATTLE AGAINST YOUR OWN BRAIN
Have you ever wondered why the anchors and the experts on business channels look a happy lot when stock markets are rising? Look at yourself and there are good chances that you'll be in the same category. We all like rising stock prices. We all like to invest more into stocks when prices are rising. But we can't call ourselves cynical for this. We are, after all, just acting like humans, driven by what our brains tell us to do.
Yes, blame it on the brain, and a chemical called dopamine. As per neurologists, dopamine is a chemical that is released in our brains when we feel good. Its release makes us feel even better. A flood of dopamine signals to our bodies that something good has happened, like when we feel happy on seeing rising stock prices. After a few repetitions, dopamine is released in our brains not when we see stock prices moving up in reality, but when we just start to expect that stock prices will move up in the near future. That causes us to invest more money in already expensive stocks, as we are 'forced' by our brains to expect rising stock prices.
Is there a way we can control this emotion? Not really. But what we can do is be reflective, and not reflexive, when stock prices are moving up. We need to think, and think hard, before we act. After all, it is our battle against our own brains.
But have hope, it can be won!