It is very important for the investors to have an emotional discipline. There have been many methods implied by different investors to get gains from the markets. But the three main requirements which distinguish the value investors are emotional discipline, proper investment decision, and ability to develop a rational. The investors always need to have a consistent and robust framework to arrive at proper investment decisions and at the same time they must think independently into why and how a business prospers and fails. This can be done by developing a proper investment insight for the markets.
Now it is very important to look at the emotional aspect involved and how one needs to inculcate the emotional discipline systematically. In the markets most of the investors are driven by greed, gambling instinct, or fear. Most of the people have the habit to make decisions on the based on what suits them and not on what the facts actually dictate. This is mostly backed by self denial or over confidence which can be very dangerous for an investor and many people increase this danger by creating an illusion of knowledge.
Most of the investors have huge shortcomings on the convictions front and never do any analysis or put any effort to understand what could be the correct decision. It is good to listen to the experts but acting on what they say impulsively is difficult and that too investors expecting short term gains often tend to lose out.
Bell The Bull says: It is important for the investors to have a deep insight and act impulsively