289- Rational Investing in Turbulent Times

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Business, Investing

4.6 • 1.6K Ratings

🗓️ 3 November 2020

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

What's going to happen in the next few months following the election? Nobody knows for sure, but there will likely be some turbulence ahead. If you’ve been following along with my channels for some time, you know the best method to make long term gains in the market. You have to do the research and buy companies that fit the Rule #1 criteria and are “on sale.” So how come everyone doesn't just do it? It could be because they’re busy adjusting to the pandemic, stressed out, or dealing with other external factors. Now more than ever, you need to take care of your mind and body so you can avoid making costly investing decisions and, more importantly, stay healthy. When you get overwhelmed by stress or fear, your rational mind loses power, and your emotions take over. Being able to control your emotions is an essential part of being a successful investor. And being able to control your emotions depends on how well you take care of yourself day-to-day. If you let anxiety, stress, or fear drive your decisions, you will end up making completely irrational choices that could hurt you in the long run. Instead, you want to train yourself to observe those negative feelings and learn how to deal with them. Constantly falling victim to them will only send you into a downward emotional spiral that might lead you to make bad investment decisions. Always fall back on the investing knowledge you have and let your rational mind take over. Rational investors have the ability to recognize when they’re feeling a bit unbalanced - and then walking away. They come back to it when they have a clear head so they don’t make a rash decision based on emotions. Whether it’s practicing staying mindful, reading, working out, or meditating, try to incorporate some form of practice into your life that will enable you to keep a clear head during stressful times. It will be a big help in developing your ability to control your emotions. Prepare yourself for whatever may happen in the stock market! Download my Stock Market Crash Survival Guide today: https://bit.ly/2TPpbYt Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey everybody this is Phil Town and this is Daniel Town and we're back with the
0:09.2	invested podcast we're back goofing up last week and we didn't get it done. Yeah. Yeah. I have I have still not been feeling well in case anybody couldn't tell from the last one where I was like a complete ghost slash drunk person slash hit in the head.
0:28.7	Like, I don't know.
0:32.0	So to recap, you have had COVID now for...
0:35.0	Oh yeah, I wasn't actually drunk.
0:38.0	No, I'm COVID free now, which is great, but I've been feeling not good and at times very, very not good for like nine weeks at this point.
0:52.0	I've kind of lost track, but I think it's somewhere around that. So yeah, we don't have to talk about that too much because we've talked about it before and I'm feeling more energy this week. I'm now measuring my time in weeks rather than days, you know, it's not like I'm going to be
1:07.1	feeling better tomorrow, but I have been feeling a little better each week.
1:10.8	And I think the challenge here for me it's kind of a strange experience
1:18.1	because I really feel like my investing practice helps me with this sort of thing
1:21.6	in terms of looking at something long term thinking
1:25.2	about it like instead of like there being a goal it being just about the experience and trying
1:30.6	to make myself feel a little better all the time without pushing it out too much and it's going to be I think a long recovery like months kind of long recovery.
1:41.0	If you're an athlete in your life, I mean like a serious athlete, maybe a
1:46.5	quasi pro or something like that, you build into your body a kind of a certain
1:51.9	knowledge I think a little bit and it makes it easy to go back to being in shape
1:56.8	like your body gets back in shape quickly and stuff and I think you know the fact that you're in
2:01.6	physically good condition helps you in some ways fight off stress that other people have.
2:09.6	I mean, you're, let's say less, your immune system might be better or something like that.
2:14.6	How do you think being an investor helps you with this kind of stress?
2:20.4	You said that you thought that your practice influences how you're dealing with things.
2:26.7	Well, an investing practice is all about doing things right now today that are only going to bear fruit two years, five years, ten years, fifty years from now.
	...

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