How to Keep Your Emotions Out of Investing

The economic numbers are improving, slowly but surely. That, in turn, is giving investors more and more confidence to get into the markets.

For many, it may be the first time they've gotten back in in many months. If you're among those feeling a bit rusty, you may want to consider brushing up on your investing skills to make sure that you're armed and ready to take on themarkets again.

Emotions can be devastating to a portfolio. Exuberance and fear have cost many investors untold amounts of money. You can avoid becoming a statistic by taking a crash course in quieting those emotions:

1. Write it out. When you buy a stock, write down the reasons why you’d sell and post it somewhere near your computer. This makes it tougher to go against yourself when the urge hits.

2. Set up alerts. Having your inbox light up with a sell alert you set previously will help push you in the right direction. Much like a personal trainer at the gym, pushing you and reminding you of what you set out to do, an alert can serve the same purpose.

3. Talk it out. If you’re comfortable, tell your friends and family why you are investing, and then let them know when you are going to buy or sell. They can help remind you of your original intent and keep you focused.

4. Do an annual portfolio review. Take a look at every  ETF and ask yourself why you’re still holding it. If no good reasons come up, let it go and find something else.

5. Follow the trends. By doing your own research and forming a strategy, investing will become less emotional because you will have a simple and easy-to-use discipline that keeps your feelings in check. The ETF Trend Following Playbook

   is a good place to begin, and it will help clarify some of the details and get you on the right path to non-emotional investing.