Five deadly sins in investing: Greed, anger, ignorance, arrogance, doubt

In Buddhism, the five poisons of the mind—greed, anger, ignorance, arrogance, and doubt—are considered the main obstacles preventing individuals from achieving enlightenment. When entering the financial markets, these poisons continue to be the biggest concerns for investors. Without overcoming these five poisons, it is very difficult to survive through prolonged bullish market phases.

Greed - The Attack of Attachment on the Market

Greed manifests when investors become attached to the idea of maximizing profits, fearing missing the peak of a rally. This feeling causes them to hold assets longer than safe, hoping prices will continue to rise. This is a common mistake in the early and middle stages of a market cycle. When prices stop rising and begin to correct, greedy investors suffer greater losses than those who know when to stop.

Anger - Losing Control When Failing

Anger appears after losing money. When investment strategies fail, investors become angry, criticize analysts, and blame the market. In this emotional state, they often cut losses hastily and exit all positions. The most forbidden action is making impulsive decisions without further consideration. Anger causes many investors to fail early and miss recovery opportunities.

Ignorance - Lack of Knowledge and Willingness to Learn

Ignorance is not only about lacking knowledge but also about unwillingness to learn. Many investors enter the market without understanding basic technical analysis, risk management, or market psychology. They make decisions based on feelings or listen to uninformed friends. Ignorance leads to choosing high-risk assets without a clear plan, often ending in total loss.

Arrogance - Disregarding Rationality

Arrogance is shown by investors who believe they are smarter than the market and do not need to follow rules or plans. They dismiss risk management strategies, thinking that bad outcomes will never happen to them. Arrogance causes them to ignore clear warning signals and continue holding losing positions. When the market suddenly reverses, arrogant investors face the biggest shocks.

Doubt - Lack of Decisiveness in Action

Doubt is characterized by continuous indecision and hesitation in every decision. When investors are overly doubtful, they are never sure when to buy or sell. They fear failure and keep hesitating, missing opportunities. Doubt makes investment plans vague, unimplementable, and easily disturbed by market psychology.

To survive long-term in the market, investors need to be aware of the five poisons—greed, anger, ignorance, arrogance, and doubt—and actively eliminate them one by one. Only when the mind is purified, plans are clear, and decisiveness is firm, can one overcome difficult market phases and achieve long-term success.