I would like to share a little thought on investor stress.
I read many posts every day and I regularly see people who get stressed when prices drop.
I knew someone who asked the community for advice because he lost 12 euros on a portfolio of 650 euros. Should I sell and cut my losses? Wait for it to go back up?
In some cases, it is interesting to draw a parallel with other everyday situations in order to put things into perspective and possibly manage immediate stress.
I asked this person if he smoked tobacco. He told me that he smoked 2 packs a day at 7 euros each.
I showed him that he was losing 14 euros a day, or 420 euros a month on his purchasing power. However, it did not bother him.
I also ask him if he optimizes his expenses by looking for example if his phone plan is not cheaper with another operator, if his energy supplier does not charge him too much at his electricity for example, etc ....
Also, is he a responsible consumer of water, does he take baths instead of showers, does he leave the TV on all the time etc ...
In the end, he loses a lot of money on a daily basis, without stress because he does not realize it.
After this reflection, the 16 euros "lost" on a market movement represent nothing when we put in parallel the hundreds of euros wasted.
What is 12 euros? a cinema ticket, a menu in a fast food restaurant .... it is nothing for those who invest.
So why stress out in the end?
So invest in the long term, take advantage of the drops to strengthen yourself and let time do its work. You will feel much better.
Oh by the way, just a little clarification, the smoker was me 😁