Stock investments 'too emotional'

The heart can win over financial reality

Not mixing emotion with investing is the number one rule of a shrewd stock picker.

But a new survey suggests that investors are often only too willing to let their emotions get in the way.

Around 17% even said being "emotionally attached" to a share would stop them selling it even if it performed poorly.

Women said share decisions were more likely to be influenced by their emotions than men, according to research by online broker Stocktrade.

Star-crossed investors

Out of 1400 people interviewed, one third said an emotional attachment would not prevent them from selling their shares if they were performing badly.

Being a successful investor requires taking a dispassionate view of your holdings Charlotte Black, chairman of Stocktrade

But as people got older, they became more sentimental towards their shares.

Only 14% of shareholders aged below 34 admitted to being reluctant to sell poorly performing shares, compared with 20% of those aged over 55.

Furthermore, women were 20% more likely to keep hold of underperforming shares than men.

Charlotte Black, chairman of Stocktrade, said: "Many people become emotionally attached to their possessions but when it comes to shares, sentimentality can come at a price.

"Being a successful investor requires taking a dispassionate view of your holdings and we're concerned that so many people struggle to achieve this."