The Emotional Roller Coaster of Investing

When it comes to investing, there is one thing you can count on. The market will go up, and the market will go down.

So how do we manage the emotions of these bull and bear markets? Here are three tips that might help.

Be prepared to brace yourself and weather the storms. The good news about a storm is that it doesn't last forever, and the sun returns. While it's natural to want to react quickly to dips in the market, resist making sudden changes to your portfolio out of fear and panic. Timing the market is difficult and is often a losing game.

Diversify your portfolio even though it might not feel like an exciting strategy. You might be tempted to chase the stories of investors who turned $1000 into millions. Don't be. Remember that it's a marathon, not a sprint… and slow and steady wins the race more often than not.

Stop checking your portfolio every day. Success in life and the markets is never a straight line up and to the right. There will be twists and turns along the way. Checking your portfolio too often will only require your emotions to navigate those twists and turns, often resulting in reactive instead of proactive decisions.

Remember, greed and fear are the primary emotions during a bull and bear market. The goal is not to separate yourself from your emotions but to better understand how they play a part in your investment decisions.

Diversification does not guarantee a profit or protect against loss in a declining financial market.