After experiencing that sort of growth in portfolio value, he becomes «immune» from feelings of emotional
panic over losses of $ 40,000 or so ($ 40,000 represents a 50 percent loss from the original $ 80,000 stock investment).
Revel in the gains, but don't
panic over the losses — and, above all else, don't sell your mutual funds during a downturn.
Not exact matches
As a rule, you want to invest enough in stocks to maintain your nest egg's purchasing power
over the long term, but not so much that you'll incur stomach - wrenching
losses and end up selling in a
panic during a market meltdown.
And what I'm talking about is taking huge risks like putting all of your money into a couple of stocks and one of them winds up going into bankruptcy, or we have a big market decline, You are
over invested in stocks, you
panic when the market goes down, you lock in your
losses and you've given up money that you will never get back.
Watching their retirement savings drop by 20 % or 30 % in value
over the course of a year can cause them to make
panicked moves out of stocks, which only guarantees their
losses.
If you are not used to investing, it is tempting to
panic over small
losses and overreact.
No
panic in investment grade bonds, and the
losses of the stock market have been minor
over that time, leaving aside the fact that the market rallied for a few more weeks after high yield began to slide.
Wendy has
over 15 years experience in treating many mental health issues including substance abuse, behavioral addictions, family systems, geriatrics, personality disorders, social problems, pain and sickness, mood disorders, behavioral problems, anxiety, depression, phobias,
panic and grief and
loss.