You know the shoe will drop someday … the markets will go down. Nobody knows when, but history shows they do. How much? Nobody knows that either. This said, many just wait and panic when there’s a sense the sky’s falling. There’s a better way to cope – and that’s to spend a little bit of time in the mental emergency simulator.
As a retired US Air Force pilot – the purpose of the simulator is to experience the anxiety when it is safe, and become used to that anxiety so the emotions don’t matter any more while decisions and processes are done just as they were practiced beforehand. You’ve learned to ignore the emotion. When the time comes, you already have made the decisions and practiced the steps to save your life.
Prudent steps can put into place key decisions to make, and when to make them, rationally without emotional hindrance when there is no true emergency. When the time comes and emotions run high, you’ve already made decisions that will save your portfolio. Work through those decisions step by step and don’t second guess yourself. Rational decisions are better than emotional ones.
The short article below, in addition to the original blog (6 Principles to cope) that goes into more detail, should help you make key decisions now that may save your portfolio later.
Article posted at AdviceIQ.
Original blog … Markets go Up and They go Down | 6 Principles to Cope … that inspired my syndicated article.
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