![]() Remember that emotions relating to one event can influence your decisions elsewhere. For example, a disagreement with a loved one, a promotion at work, or an upcoming reunion could all spill over into your investment decisions. ![]() But first, here are a few things to watch out for. And we'll share some tips for balancing them. So we know emotion and logic need to work together when you make choices. How do you know when emotion is leading you in the wrong direction? Your advisor can help keep things in perspective during the good times and the not-so-good times and help you make decisions that are right for your goals. And you don't have to feel like you're making these life-changing decisions alone. It's about setting goals and putting a long-term plan in place that you'll be comfortable sticking to no matter what the market is doing. Successful investing isn't about reacting to what happens in the market day to day. It's important to zoom out and stay focused on the bigger picture. But on the way back up, things aren't that much easier, because you never quite know when the good times will return or how long they'll last when they do return. The night is always darkest before the dawn. When things feel chaotic, and we're only hearing bad news, it's easy to miss the fact that the market's lowest points are really the moments that hold the most opportunity for investors. And in those moments, our instincts might tell us to get out of the game entirely, even though that may not be what's best for our long-term plans. When the market does go into a downturn, we might feel anxiety, then fear, and eventually desperation and panic. It's a normal and expected part of the cycle. It feels like the bull market will last forever.īut that's the moment in the market cycle where we're actually the most vulnerable because the market will take a turn at some point. Our instincts might tell us to buy more because we feel invincible. We feel optimism, excitement, even euphoria. When the market is doing great, it feels great. That can make things tricky because sometimes the best thing to do is the opposite of what our instincts tell us to do. Our emotions can take us in all kinds of directions in response to what the market is doing. Investing is emotional because we're human.
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