The Psychology Of The Stock Market, In One Image

What a wild year it’s been. You could say that the pandemic was like an entire market cycle all rolled into one year. A boom, a bust and a boom.

In January I wrote the following piece about how to manage a crazy booming stock market and avoid the temptation to get overly aggressive.

Then just 3 months later I wrote this piece about how to manage a crazy collapse and avoid the temptation to get overly conservative.

But this is the battle we constantly wage with ourselves. Successful investing is mostly a battle between our ears and staying grounded when everyone else is losing it on the extremes. The key is, how disciplined can you remain through the boom, bust, boom, and bust?

(The psychology of the stock market in one image)

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