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How do you deal with market ups and downs?
Much like a roller coaster, there are rules we need to follow.
Here are 5 rules you should always keep in mind.
- A ROLLERCOASTER THREAD -
Much like a roller coaster, there are rules we need to follow.
Here are 5 rules you should always keep in mind.
- A ROLLERCOASTER THREAD -
1.
“Put on your restraints”
Bars and belts are there to keep us safe on a rollercoaster.
So we don’t fall off and kill ourselves.
Think of these restraints as your investment plan...
“Put on your restraints”
Bars and belts are there to keep us safe on a rollercoaster.
So we don’t fall off and kill ourselves.
Think of these restraints as your investment plan...
If you don’t have a plan.
Things like:
- A time horizon
- Risk tolerance
- Investment goals
- A strategy to follow
You’re riding the roller coaster without a restraint.
And you might just end up falling off.
Things like:
- A time horizon
- Risk tolerance
- Investment goals
- A strategy to follow
You’re riding the roller coaster without a restraint.
And you might just end up falling off.
2.
“Look forward”
You wouldn’t turn around on a rollercoaster.
If you did, you put yourself at risk of maybe hurting your neck… or worse.
Keep your eyes forward at all times.
If you have a long term horizon.
Think of the end goal.
“Look forward”
You wouldn’t turn around on a rollercoaster.
If you did, you put yourself at risk of maybe hurting your neck… or worse.
Keep your eyes forward at all times.
If you have a long term horizon.
Think of the end goal.
3.
“Don’t exit the rollercoaster until you’re told”
When the rollercoaster ends, we wait for the operators to tell us when to exit.
We don’t panic and try to exit earlier than told to do so.
Why?
Because it could be dangerous...
“Don’t exit the rollercoaster until you’re told”
When the rollercoaster ends, we wait for the operators to tell us when to exit.
We don’t panic and try to exit earlier than told to do so.
Why?
Because it could be dangerous...
Much like the market…
We don’t want to panic and jump ship too early.
If you’re a long term investor, you might actually benefit from dollar-cost averaging into your positions instead.
Remember…
You only lose money when you sell.
We don’t want to panic and jump ship too early.
If you’re a long term investor, you might actually benefit from dollar-cost averaging into your positions instead.
Remember…
You only lose money when you sell.
4.
“Do NOT stand up during the ride”
When the rollercoaster is in motion, the last thing you want to do is try to stand up.
So many investors get eager for increased gains when the market is moving upwards.
This is when you have to put your emotions aside.
“Do NOT stand up during the ride”
When the rollercoaster is in motion, the last thing you want to do is try to stand up.
So many investors get eager for increased gains when the market is moving upwards.
This is when you have to put your emotions aside.
Don’t try to stand.
You’re only putting yourself and your portfolio at risk.
Sit down and enjoy the ride.
You’re only putting yourself and your portfolio at risk.
Sit down and enjoy the ride.
5.
“Don’t ride under the influence of drugs or alcohol”
No brainer right?
You’d be surprised how many people invest when they’re under the influence.
If you ride a rollercoaster while drunk...
It might not turn out too well for you
“Don’t ride under the influence of drugs or alcohol”
No brainer right?
You’d be surprised how many people invest when they’re under the influence.
If you ride a rollercoaster while drunk...
It might not turn out too well for you
If you ride under the influence of drugs…
You’re more likely to make stupid decisions.
Ride with a clear mind.
A sober mind.
You’re more likely to make stupid decisions.
Ride with a clear mind.
A sober mind.
BONUS RULE
6.
“Proper analysis of the rollercoaster will make you feel more at ease”
If you know where the twists, turns and drops are on the track...
Then you’re less likely to be surprised when it happens.
The same thing goes for the market…
6.
“Proper analysis of the rollercoaster will make you feel more at ease”
If you know where the twists, turns and drops are on the track...
Then you’re less likely to be surprised when it happens.
The same thing goes for the market…
If you’ve done a strong analysis, very little can surprise you.
Join over 160 others in learning how to conduct your own analysis of the track.
Eliminate surprises.
Follow the rules of the rollercoaster.
And win.
Check it out below: https://bit.ly/dividendmoney
Join over 160 others in learning how to conduct your own analysis of the track.
Eliminate surprises.
Follow the rules of the rollercoaster.
And win.
Check it out below: https://bit.ly/dividendmoney
