How to Stay Calm When Your Stocks Are Dropping
The stock market has brought wealth to millions of investors over the long run. To claim your share of that wealth, however, you have to be able to endure just about everything Wall Street throws at you -- and you'll have to fight your own emotional responses in order to stick with your winning strategy.
Most investors understand that stock markets go up and down, sometimes violently. When the entire market takes a plunge, it's painful, but it comes with the somewhat comforting feeling that just about everyone's in exactly the same boat. Together, you can ride out the storm -- like so many people did in early 2020 -- and emerge stronger, wiser, and richer.
What can actually hurt more, though, is when your stocks seem to take the brunt of the damage. It can make you question your ability to choose stocks for the long haul. It can even make you give up on investing in great companies entirely. As understandable as that reaction is, it's the wrong approach. There are ways to turn your gut reactions into actionable and valuable guidance, but first, you have to get some perspective and get your emotions under control.
Source Fool.com
