Most investors think that they are smarter than the market & they want to time it & invest at down & exit at high to make the money. What effect does it have on their investments and psyche? Lets look at a case in point who we have finally brought back to the fold after many months of distrust of market behaviour.
It is very difficult and dare we say, impossible to ’time’ the market on both sides – up and down unless you are a soothsayer. Trying to ‘time’ the market causes huge losses and loss of investment opportunity. Fear and euphoria are both emotions which lead to selling or buying without discipline causing a loss to wealth creation. Movement is second nature to the Markets – be it up or down. Stock Markets will always be turbulent. Black Swan events will occur causing shock, fear and panic. It is never about ‘IF’ it will happen. It is about ‘WHEN’ it will happen. All we can do is mentally be prepared not to get caught in the greed & euphoria versus fear & panic cycle
Market volatility and emotional volatility go hand in hand. Our emotions make us try to ‘time’ the market. We sell when we panic or buy too much when we are excited or euphoric. Only disciplined, patient and long-term investors are rewarded by the market. We must always remember that it is important to stick to our financial plan and asset allocation and avoid allowing emotions to come in the way for financial success.
Yoga is more inclined towards our inner spiritual progress. Yoga connects our mind and body together. It uses practices which helps one control the mind rather than mind controlling us. Yoga increases mindfulness. It improves attention to detail and focus by clearing the clutter around our head which results in better decision making. The article looks at links on how yoga and investments interconnect
