If you’re an active investor like I am, days like yesterday can be a scary thing. The DOW was down 222 points the highest one day drop since Feb. It is easy to get swooped up with today’s news…debt problems in Spain, Greece and Portugal, a weakening Euro and China pulling back the strings on its economy to try and keep it from boiling over. What is an investor to do to stay on top? Here are some “zone” tips to keep you investing at your prime and profiting from it.
1. Keep Calm, and Carry On. The worst thing to do in markets like yesterday is to give into your fear. Keep rational. CBNC and BNN are all about the story and fear sells advertising and markets. Keep your head in a good place. Tomorrow is another day. Take advantage of opportunities instead of running from them.
2. Zen Zone. Before every trading day I think about those days when I was quit witted, making good decisions, and profiting. I remember what I was thinking that day, what my motivations were and how if felt at the end of the day when I had made all of the right decisions. Starting that day in the “zone” is crucial to keep you on the ball.
3. Keep Your Eye on the Ball. Remember what your ultimate objective is and write it on a piece of paper and keep in in view. If it is capital preservation, short term gain, or yield for the long haul, or other write it down. When you process information when the market is crappy you’ll keep your eye on the ball and take actions to support what you want to achieve.
4. Why do you want it? Why do you really want the money that you’re making? Is it family? freedom? security? achievement? or fun? Anchor yourself to your desired future enjoying the money and re-enforce why you are going to make it or make more of it. What that money will actually do for you and what happiness it will bring you.
5. Celebrate! When you’re a star in the market. Make sure you recognize it and reward yourself for being such a champ. Re-enforce your positive actions while investing and you’ll repeat them in the future to make even more money. And you know how I love making more money.
Have an amazing week,
Dave
