MARKETPSYCH SHORT FILMS: 'RELATIONSHIP ISSUES'

Hello, Fellow Investors.

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Are you good at "relationships"? I'm not talking about your love life. I'm talking about your relationship with your investments. Of course, both involve a number of unconscious motivations and presuppositions that determine whether we will be successful in them. (This concept is expanded upon in our book, available HERE.)

Investing relationships can take a number of forms. You can "date" your stocks, you can "marry" your stocks. Heck, you can even have a tequila-fueled "one night stand" with your stock and do "stuff" you wouldn't normally. (We won't tell).

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There are a lot of right ways to be successful. But having some guidelines is crucial. Three simple rules for stock relationships are:

1) Establish which category the stock belongs in (e.g., Date, Marry,"What Happens in Vegas".)

2) Identify what information (technical, fundamental, geo-political) is crucial to your decision-making.

3) Know when to LEAVE.

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Neil Sedaka was right; breaking up is hard to do. But it's an essential skill for investors. Few of us marry our high school sweetheart in life or in stocks.

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Adopting a proactive approach gives us some much needed control. Otherwise we're always on the receiving end and the other party is dictating our fate.

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(Click HERE for a MarketPsych Short Film illustrating this phenomenon).

Want to hear one of the most depressing pieces of wisdom you will ever hear?

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"The one who loves least controls the relationship

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I told you it was depressing.

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Whether it's business, romantic or investing relationships - this admittedly nauseating truth remains.

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And trust me, your stock doesn't love you. (Not even AAPL. It only feels that way).

We invite you to visit http://www.marketpsych.com/ for tests, articles and a list of services that MarketPsych provides.

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We also invite you to scroll down and check out some of the wisdom by Dr. Richard Peterson on the Crisis in Japan, Rich Friesen on Psychology of Trading, and Mark, The Advisor on the importance of trust.

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Happy Investing. And, hey...let's be careful out there.

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-Dr. Frankenstocks

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Frank Murtha, Ph.D.