In this post, the author discusses the critical importance of making sound financial decisions and avoiding emotional reactions when it comes to investing. They begin by recounting an encounter with a man named Frank during the Great Global Recession, who made a significant mistake by selling his investments due to fear and never bought back in.

The author emphasizes that such emotional decisions can lead to substantial financial losses, and statistically, once someone sells out of fear, they rarely re-enter the market, missing out on potential gains.

They acknowledge that it’s normal to feel worried or nervous when the stock market is down, as it’s a natural human response. However, they stress the importance of understanding why these emotions occur and how to protect oneself from making rash financial decisions.

The key takeaway from the post is that it’s crucial to remain disciplined, avoid selling out of fear during market downturns, and focus on the long-term perspective. The author quotes John Templeton, noting that believing “This Time It’s Different” can be one of the costliest mistakes in financial history. Instead, they encourage readers to make informed and rational financial choices, ultimately aiming for financial success and a happy life.


All information herein has been prepared solely for information purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Past performance is no indication of future performance.