What to do when the market is volatile?

What to do when the market is volatile?

Feb 04, 2022

If you are a newbie investor or experienced investor, and if you invest in the US market (or other markets like Vietnam), chances are you are seeing your portfolio take a big hit in the last few weeks.

I am too.

All of my hard-earned money is there in the investment account plummetted in some days.

Admittedly that is not an easy feeling for anyone. Sometimes it also feels painful. Like physically painful

But I didn’t panic or go all the way to pull money out? Why?

Because in 2020, I learned a lesson the hard way. Right when the pandemic started, I panicked. I withdrew my investment because the future seemed so bleak and I just needed to feel safe with my money hiding somewhere safe (not under my pillow of course lol)

So I did it. I was nervous, which my current self do not blame my past self. I was inexperienced. I was alone here in Canada and I needed some peace of mind to continue to live my life.

But that action alone cost me some real money. Hard-earned money. When I was feeling brave enough the get back into the game, the market was already covered and on the rise.

I suffered twice: realizing the material loss, and failing to get back in time and bought the stock when the prices are high (too high that when those stocks went down, I made some losses again).

However, this experience is invaluable. I learned not to act on emotion, especially when it comes to investment.

In a nutshell, the most challenging game in the investing journey is how to stay cool and act against our emotions, our psychology.

Read more here:

https://minhandlife.com/what-to-do-when-the-market-is-volatile/

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