A common mistake is to make decisions based on emotions. In good times, investors are excited, they want to invest more and often “buy high." When markets turn negative, investors become fearful and decide to cut their losses and “sell low."
The investing emotional roller coaster shows what an investor may experience as their investment rises and falls. The key is to stay disciplined and committed to your long-term investment plan to avoid riding the emotional roller coaster. There are ways to manage emotions when you encounter uncertainty in the markets. Speak to your advisor – he or she can help provide the knowledge you need to help you stay focused on your long-term goals.