3 Things an Emotionally Intelligent Investor Does:
- Label your Emotions – Wrote about this last week
- Pre-Commit to an Action – Refer to Ulyssesan Contract Post
- Create a Gap Between Stimulus and Response. Holocaust Survivor, Neurologist, Philosopher and Author “Viktor Frankl” in his book “Man’s Search for Meaning” wrote that our freedom lies in the gap between stimulus and response. Ponder over this. It is so powerful.
If you label your emotions, chances are you will not succumb to the self-destructive emotions in investing.
To further protect yourself, pre-commit to an action. For example, SIP (or Rupee Cost Averaging) is one such way. Invest every month no matter the market levels.
Finally create a gap between stimulus and response. Speak with your real financial professional. If you do not have a real one, just look out of the window and go for a walk.