Putting Mind Over Matter
Do investors rely on emotion when investing? Many behavioral and psychologists believe they do. Click here to learn what motivates us, and how to manage your emotions when it comes to investing to weather invevitable financial storms that may arise.
Tips for Handling Market Volatility
Have you ever noticed that when your funds have been doing poorly, you experience a more intense level of displeasure compared to the level of pleasure you feel when they are doing better? Don’t worry – you’re not alone! This is a psychological effect known as loss aversion, and it’s believed to be hard-wired into our brains.
The best way to respond to these emotional swings is to try to take emotion out of the equation altogether. Historically, over long periods, markets have moved up, though not in a straight line. It’s that long historic sweep that you should focus on, not short-term movements.
You should also pay attention to the things you can control in investing and ignore what you cannot change. Click here for a few tips to keep in mind.
