It’s the spring of 2020, and the market is incredibly volatile.
It soars up one day and plummets down the next.
No one knows what to expect from the market or the economy.
No one knows what to expect, period.
What can we do in the midst of such turbulence? What should we do?
What our minds want to do and what we should do are at war with each other.
For example, your mind might want you to panic sell after a sharp market downturn.
“Take me off this roller coaster!” it screams.
But in reality, turning paper losses into real losses is a mistake. Investors often lose more when they panic and sell than they would have if they stayed the course.
Unfortunately, your mind is nowhere near that conclusion. It’s too busy having an emotional reaction to the news.
How can you protect yourself from reacting to panic? Is it possible to let some semblance of logic shine through?
Today’s guests say yes. It’s possible to save yourself from yourself, as long as you learn to recognize the cognitive tricks your mind plays on you.