This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Become numb to market fluctuations
In my article, “Will The Market Go Back Up? I Don’t Know & I Don’t Care. Are You An Emotional Investor?” I discuss in detail why I never invest much emotion into whether the market goes up or down.
It’s accurate that the more extensive your portfolio, the larger the losses.
However, the bigger the losses, the bigger the incoming returns.
I experienced phenomenal losses and growth between 2020–2021. And that timeframe was pivotal for my investment portfolio.
Be A Stoic Investor
It’s impossible to invest and not lose money. You’re playing a game of risk. With risk comes rewards but also losses. The good news is that investing is a game that always allows you to win when you do it prudently.
The average returns for the stock market over the past several decades have been positive.
Hence, you have nothing to fear concerning losses; they will always recover – it’s like magic.
Start With Small Balances
Most people will start their investment and retirement accounts with a small sum of money; this amount is a perfect starting point because you will get to solidify your stoic approach to investing.
The best time to practice emotional regulation is when your balances are lower, so as your balances grow, you’re used to losses.
Moreover, as your account balance grows, the losses grow, which means you can adjust your emotions to position yourself as a stoic investor.
Whenever I see losses, I tell myself, “Bummer,” keep it moving and invest more.
Stop Fretting Over Losses – Despite Your Age
I have youth on my side. But even 40-year-olds are a couple of decades away from retirement. There is no need to fret over losses.
Even if you’re in the 60–80 age bracket, you can take out what you need and leave the rest in your investment or retirement accounts, so your balance can recover with the incoming market adjustments.
The more consistent you are with your investment strategy, the more immune you will become to the losses because you have won so many times over decades.
Three Things To Consider Doing As An Investor
When the market is down, invest. Continue buying more shares when the market is down; you get a discounted rate.
When the market is up, invest. Continue buying more shares when the market is up; it will continue to increase over time.
Stay consistent. The best thing an investor can do is be consistent to maximize the rewards of compound interest.
How to Avoid an Investing Mid-life Crisis
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.