The stock market has had a bumpy ride the first few months of 2018. If the ups and downs have left you feeling uneasy, you are not alone. It is a natural reaction to feel confident when the market is up and ready to run for the hills when it is down. However, more times than not, our emotions can betray us when it comes to investing, leading us to sell low and buying high; the exact opposite of what an investor has been taught to do. The good news is you can use these conflicting feelings to work for you by flipping the script and acting in the opposite manor that you are inclined to. Now this is no easy task. Even the most successful investors fall prey to their emotions at some point.
Let’s break this down. Jeff Clark, author of Jeff Clark’s Market Minute, provides a great example in his post titled, “The Easiest Investment System Ever." In his article he talks about the time he went to visit a friend in the hospital. During his visit his attention was drawn to the Pain Scale Chart on the wall. (See Image Below)