Hirschhorn: Fighting the Fear of Re-Injury
It's no surprise investors are hesitant to get back into the markets.
So how can people get over their fear? Well, according to market coach Doug Hirschhorn, it's going to require a change in perspective.
(See the video)
Before venturing back into the markets, investors need to know their overall market thesis and develop a strategy to follow through on that thesis.
They also need to have an exit strategy in place before they get in.
After you've taken the first three steps, you'll need to set your strategy for capital allocation--never have more than 10 percent of your capital in a single trade.
Finally, keep your emotions out of the trade. Be rational in your approach.
Doug Hirschhorn is the chief executive officer of Edge Consulting, a firm specializing in “Peak Performance Coaching.” He holds a Ph.D. in Psychology with a specialization in sport psychology, and has offices in New York and South Florida. His client list includes elite athletes as well as many of the largest banks, hedge funds and financial institutions in the world. Doug is presently at work on his new book, Street Smarts (Putnam, 2010).
Have a question for Doug? You can reach him through his Web site, DrDoug.com
Disclaimer: Doug Hirschhorn's expertise is in the psychology of achieving peak performance. He is not a financial advisor and does not make trading or investment recommendations or provide trading or investment advice. He is an expert on the mental game. Although Doug Hirschhorn has a Ph.D. in Psychology with a specialization in sport psychology, he is not a licensed psychologist and does not provide therapeutic, clinical or counseling services.