We’ve all experienced one of “those” days.
You know, the ones where suddenly, we are faced with a market change and possibly lost a bit more than we would have anticipated.
It can really throw us for a loop and leave us feeling somewhat crazed and on edge.
Unfortunately, there isn’t an instant cure that will make this feeling go away, but the good news is that there are things we can do to help ourselves recover and regain our balance.
“If You Cannot Control Your Emotions,
You Cannot Control Your Money”
— Warren Buffett
To be a successful investor, we need to maintain our composure, keep calm, objective and be able to roll with the punches.
If we can’t learn to do that, we will inevitably sabotage our success by making costly mistakes.
The cause of stress could be different for all of us. For some, it’s about being new to the investing world and questioning our ability or maybe it’s having only a small amount of capital to work with.
For others it’s that feeling we aren’t meeting our expectations and we begin to obsess over how we can do things differently. Perhaps, those expectations we have for ourselves aren’t realistic, even for more experienced investors.
Hard Work Doesn’t Always = Success
I know a lot of us have a belief that if we put in the time and effort, it should result in success and we will be rewarded.
And in a perfect world, it should.
In the real world and in the world of trading, however, there’s no guarantee that hard work will lead to our success. In fact, many times it doesn’t. If we hold this belief and become consumed with this notion, we will become paralyzed and make failure even more likely.
Coping with emotional issues, even if they are somewhat minor, can be a difficult process and requires work on our part. It takes a lot of mental effort to counteract negative thoughts, calm ourselves when we are in a panic and overcome self-doubt.
For example, we have to convince ourselves that when we are thinking that we don’t have the skills necessary to succeed that in reality, we do. That’s not a simple thing to do.
Now, I’m not saying that if we truly don’t have the skills or don’t have enough capital to be successful that we lie to ourselves. I am saying that if we do have them, it is worth us putting in the work to start believing that we can succeed and that what we are feeling in the moment is just our fear speaking and trying to derail us.
Confront The Inner Voice Of Fear
That voice of fear is what we need to change.
The more we tell ourselves that we can do it, the more we will begin to trust in ourselves. The more we tell ourselves that we need to cut ourselves some slack when we have the need to be perfect, the more relaxed we will become.
As we become calmer and the voice of fear is replaced by a more confident voice, the clearer our minds will become. And when our minds are clearer, we can think more objectively, make better decisions and we are more able to stick to the fundamentals of investing.
When this happens, we will find that there are numerous opportunities in the market and they are waiting for us to take advantage of them.