The pull of the stock market to people can sometimes be so strong that they spend hours monitoring it. Some cannot pay attention to their job, primarily when the marketplace is about to close for the day. Others put all their faith of stocks, to the point that they even resign and make trading a full-time thing.
Although we believe that adults have the right to do whatever they please, it is usually these obsessive shareholders whose mental health suffer due to the stock market too. After all, investing in a highly valued corporation, in the beginning, does not guarantee that it will be in the same state years later. Since you are buying shares – not precious metals – you are more likely to feel the effects of inflation than not.
To avoid going loco when stocks dip because of various reasons, here are some comforting words to tell yourself.
Chill – It May Not Be Permanent
According to Brad Klontz, PsyD “As long as we feel like we’re doing average and have basic needs met, such as food and shelter, there is no correlation between money and happiness.” But, No! The beauty of investing in established companies like Merck, Amazon, and Apple instead of the startup ones is that a drop in their market value does not always last long. Their products and services benefit folks from across the globe, you see. They can go back up on the leaderboard in a little while.
In case you invested in not-so-popular brands, on the other hand, you should not worry too much still. Assuming you have studied how the company performed during and survived economic downturns, a sudden dip may not affect it significantly. You merely have to relax your mind because it may not be something permanent.
It’s Better Not To Read Too Much Info About It
Focusing on the movement of the stocks 24/7 is not advisable at all. When you do that, you tend to not only watch the numbers and graphs rise and fall. There is a chance for you to look for media outlets and listen to commentaries regarding the matter.
The thing is, everyone has something to say about the share market when things go south. If we are honest, though, most of them practically mean more to wreak havoc in your system than give you peace. Hence, you should avoid reading all the financial newspapers or reports out there. “Instead of dwelling on what’s wrong with your finances, think about what you have to be grateful for. Notice what’s going right, make peace with your problems, and decide to learn from your challenges.” Bahareh Talei, Psy.D. emphasizes.
Salvaging The Investment Capital Is Still Possible
Don’t you see any way for your stock value to rise again? Well, try not to get anxious about going bankrupt yet. You may still be able to sell your shares and gain profits from it.
The reason why it is possible is that some investors love buying stocks when the economy is at a low point. They think that their value can increase sometime in the future; they don’t mind waiting for it to happen. Because of it, you can dispose of the shares at a price higher than what you paid for initially.
“We all have money issues and quirks of one kind or another. If we don’t know what those quirks are, they will emerge in a time of real stress or panic.” Eric Dammann, PhD said. Experiencing a dip in the stock market may still not be easy for veteran investors; that’s why one can imagine how much effect it has on novice shareholders. It may keep you up at night; it may cause you to doubt the investment decision you made. Nevertheless, remember the words above to comfort yourself when stocks drop in value.