Found this video online of a roller coaster. Even though I’m just waiting from my home in
front of my computer, it still scares me and I get a physical reaction. Pulse quickens, and I start to sweat a
little.
I’m sure some people watching the stock market last week
felt the same way. And it’s not
surprising. On one hand, it’s just
numbers on a screen. On the other, that
represents real money – your money! The
money you worked hard for and you will need when you retire.
Where the stock market and roller coasters differ is that
with roller coasters you can see what is coming next. And the higher you go, the greater the
excitement because after every big “up”, there’s a big “down”.
In the stock market, you can’t see what’s next because there’s
no real way to predict. And when it goes
up, people get more excited, not nervous.
People buy more stocks to “get in on the action” even though they can’t
see what is coming next.
What’s the point here?
Well, know yourself.
I’m not suggesting you take money out of the market or put money
in. But know that if you get really
nervous when the market is going down, maybe you should rethink how your
account is handled.
On the other hand, don’t get too cocky when the market is
going up. When the market goes up, that’s
when people start watching infomercials telling you that you too can pick
winning stocks while watching infomercials in the middle of the night! Call now!
That only makes money for the creator of the infomercial.
People get brave and daring, and then something bad happens
and then starts to get brave again. And
the cycle goes on. Wash ,
rinse, repeat.
Find out if your retirement account is really set up for what
you truly want – not what you think when you’re brave. And not what you think when you’re hiding
under the covers.
When do you want to get off the roller coaster? Otherwise, enjoy the ride!
