Using Mindfulness To Navigate Through Market Fluctuations
As we enter the summer, there is more than just new life and fresh beginnings everywhere, there are new tax plans and changes in the country going into effect. As if the market wasn't volatile enough as of late, people trading off of their emotions and speculation over what the new plans will mean for business are driving the markets to swing like crazy. Just because it seems like everyone else around you is trading based off of emotion though, does not mean you should do the same thing. We all know, but it is important to remember, you never trade off of emotions. What is important to the success of your portfolio is what you do before a dip, not blind reactions to it. Though we can all know these things, it can sometimes be hard to actualize them in our real life. To help we have created a brief mindfulness technique to do every time before you make a trade in these rough times.
1- Don't Panic
Any fans of Hitchhiker's Guide to the Universe here? The frequently mentioned adage in the classic book holds well here. Don't panic! If you must give yourself five minutes of panic, but don't buy, sell, touch anything. Panic gets you nowhere, not in the end of the universe and most certainly not when approaching the markets.
2- 5-4-3 Breathing
The breathing technique we taught you a while back here (https://www.bullionite.com/blog/2020/4/25/4-breathing-exercises) is a great one to recenter yourself and bring yourself back into the moment. Breathe in through your nose for 5 counts, allowing your belly to fill with air, hold 4 counts and exhale for 3 counts. Repeat this cycle a minimum of five times or until you feel yourself back in the present moment again. No speculating, good or bad, of the future, simply be here.
3- Look at your Portfolio Again
Look again at your portfolio with fresh eyes and a calm mind. Give yourself time to study the past behavior and find the logic even in the most illogical movements. Make sure you are within your limits, refresh your limits if needed.
4- Don't Panic
If the panic returns at this point, start asking yourself why you are panicked. Are you nervous about your future, losing money? The obvious answer then is not to sell at a dive. Are you worried about the health and well being of your loved ones, yourself and/or the world? We are in a unique place where we are not just worried about financial well being and the well being of everyone as a whole. It is no small task. But remind yourself that we are relatively safe, the vaccine is here and effective and we are all on our way to immunity.
5- Call in the Experts
If you are still not feeling well, it may be time for the experts. If it is a purely emotional episode, you may benefit from calling your therapist and getting a quick phone session. If it is about the health of your portfolio, it is time to call your broker. If you don't have a broker, or are unhappy with your current one, it might be time to call the team at Bullionite and have us take a look and give our advice to best navigate the challenging markets as of late.
6- Money can Always be Created
One final word of advice is not to get too hung up on money. It sounds hard, but truly if you have spent any time in the markets you know how easy it can come and go. We all have our stories of selling too early or too late and the losses we experienced. But we also have all our gains. There is always an opportunity to create more money, the novel thing about the markets is it gives us the ability to create money.
So in closing, breath, don't panic, call your team and so long (and thanks for all the fish). Do you have any questions or comments? Reach out to us at info@bullionite.com.