Of course you are most likely online all the time now that stock trading portfolios can already be accessed on mobile gadgets. It would be tough to avoid influencing your investing decisions with your emotions especially during these times when you see “red” numbers in your portfolio.
Again, I would like to address the attitude of new and young investors. Do not act like the experienced investors and the hardcore active/day traders. Stop feeling like a veteran when you barely even crossed over your first year of investing.
When you start to feel and act like an “expert”, that’s the time when you have to be ready for some shooting meteor-like impact when the bear season comes. Do not forget what you believed in from the beginning! Long-term! Long-term! Long-term!
Control Your Emotions
1. Investing should be a habit, not an immediate emotional response. This goes out more to employed individuals who have recently learned about investing in the stock market. That is why you chose an “automatic” investing plan (cost-averaging strategy) so that you can concentrate more on your job, your family, and your other activities in life. Put your emotions instead in these areas.
2. From the start, your investing plan should have included your specific goals and objectives. And most of them should have been long-term. Long-term means five years or more. Don’t get focused too much on the numbers in your current portfolio. Otherwise you will find yourself too obsessed with the up and down movement of the market everyday. Remember to stick to your specific long-term goals and you’ll feel healthier.
3. Invest like a robot. Master your emotions using your recent market correction experience as a reference on how you should react to future market volatility. (Volatility refers to the crazy Harlem Shake-like movement of the market.) Most robots in movies that we watch do not panic easily. They just do what they have to do. In a way, you can imitate them.
Always remember that when the market corrects, or worst, crashes, you should just continue what you are doing for your God, your family, and your career. Continue learning and investing with a more mature approach and strategy.
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P.S. 1.The Angat Pilipinas Coalition for Financial Literacy and OFW UsapangPiso Forum will be conducting its first ever PAID webinar in 2013 entitled “Multiplying Wealth – A Comprehensive Webinar on Investing” on March 22, 2013 (both Fridays) at 9pm (Philippine time). The webinar will feature my fellow blogger and personal finance advocate Fitz Villafuerte and he will discuss about investment preparation requirements for beginners, analysis for spotting good investments, types of investments that will make you a millionaire, investment portfolio creation and management, and an easy and simple strategy that will help you retire rich. And by the way, the webinar is also open to non-OFW’s. Register here now!
P.S. 2. Bro. Bo Sanchez appointed me last week as an investing coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at firstname.lastname@example.org if you have any questions.
P.S. 3. The OFW UsapangPiso Forum will be webcasting a special talk on how OFW’s can invest in other countries other than the Philippines and their respective countries of work featuring Mr. Jess Uy, a financial consultant based in Singapore. The webcast will start at 3PM (Philippine time) on August 31, 2013. To watch the livestreaming event, go this Ustream link of OFW UsapangPiso Event Feeds Channel. You may also register at our Anymeeting webinar platform through this online form.
Photo credit: Museum of Hartlepool