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Mental Posture is your emotional response to the share market in general and to your shares in particular. Objectively, investing in shares should be a very scientific process. The reality is that our emotions of fear and greed always tend to interfere with our decision-making process in the share market. For example, if you have bought a share for 1000c three months ago and it has fallen to 800c, what are you feeling inside? You are feeling the pain of loss and you are trying to avoid facing that loss directly by holding onto the share in the hope that it will go up again in the future. You have made the price which you paid for the share three months ago the single most important factor in your decision to hold it rather than sell it. This is irrational because the price that you paid for the share is now completely irrelevant. The only thing that matters now is whether it will go up or down from this point. This example demonstrates how having a bad mental posture in relation to your shares can cost you dearly in the share market.

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