Today’s market is uncertain. We are now standing between market drops due to US-China trade war and the renewed fears of a looming recession. In a time like these, investors are susceptible to getting swept up by their emotions. Cited from CNBC Invest In You, you need to avoid these investing mistakes when the market sinks.
Resist the urge to check your portfolio
Every time we watch the stock market we always get a roller coaster of emotions. When it goes up, then you feel happy. On the other hand, if on the day it goes down, you feel extra miserable.
Therefore, at the moment like this, the best option is not to look at your portfolio. The move may sound counterintuitive. Yet, this may save you.
Also read: 5 Investment Mistakes Investors Often Make
Checking your portfolio during this time may only put you in a bad mood. Consequently, you will only ruin your day. To avoid that, you can lock yourself out of your account, then enjoy anything you have to do in your life. For instance, you can go to work, enjoy your time with your family, and many more.
Above all, when we continuously face the market goes up and down, we become more miserable and act on it. Those panicked decision based on emotions often leads to regrets later.
In case you really have to log in, you need to really hold on your intention. Decide what change you want to make and open your portfolio. Once, you finish with the change, you have to close it again.
Also read: 5 Unique Investments with High Value
Use caution when making decisions about the future
The decisions you make about the stock market are always decisions about the future. However, many investors decide how to invest based on what happened in the past. Thus, they only add an emotional burden to their move.
Instead of that, you have to start with a clean piece of paper or spreadsheet. Imagine all your assets are in cash, and then decide how you would invest that money today.
