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Message: The emotions of investing

The emotions of investing

posted on Feb 08, 2008 08:56AM

Just wanted to post a reminder to those holding ACT. Many of you may know this, but it's a good thing to keep in mind...

The key to being a great investor is to "keep your head about you while others are losing theirs". Often, our emotions can get the best of us when following the stock market. When the price is moving up, we tend to think "we can't lose, it will never go down!", and when the price drops we tend to think "I screwed up, I better get out before it drops more!".

Note that in both of these responses, there is no consideration of the actual facts, and prospects surrounding the company or opportunity. Rational decision-making often loses out to emotionally driven decisions.

As it relates to ACT, do your due diligence. If you liked the company and its prospects at $0.50/share, then the price at $0.35 looks very attractive IMHO (and it seems alot of people liked it at $0.50).

Long & strong!

R-Dub

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