Mindful Investing: How to Balance your Emotions While Investing in the Bull and Bear Market?

Life has its cycles, as do the economy and the financial markets. But when it comes to market cycles, emotions often get in our way. Strong feelings can cloud our judgment and steer us toward financial decisions that may not support our long-term goals. Taking a moment to ask yourself what is driving a decision can act as a circuit-breaker and lead to better outcomes.Practicing mindfulness can help you develop discipline in financial decision-making and also help manage your emotions in the face of market ups and downs. Understanding the market cycles and paying close attention to ourfeelings can help us stay on track.
Three steps to becoming a mindful investor
A) Aware of your emotions: An emotional approach makes sense forevery day, low-stakes decisions but may not make sense when investing for long-term goals.

  1. Understand that “going with your gut” can lead to better or worse choices, depending on the situation and person.
  2.  Practice mindfulness when the market gets rocky and you feel emotional impulses kicking in. This practice consists of pausing to reflect on the here and now, meditating, counting your blessings, refocusing on the long term, or merely stopping to question why you are feeling a certain way; all constitute mindful acts.

Emotions during various phases of the market

  1. At the top: FOMO (Fear of missing out), Overconfidence, Greed, Group mentality; Focus on putting barriers and not getting caught in continuing as is thinking. 
  2. Market Slides down: Fear and temptations, Planning fallacy. At this time, you should take time to focus on things in your life that make you feel grateful. 
  3. Hitting Bottom: Depression, surrendering to glass is empty, and it will never fill it. Decision paralysis sets in. However, self-compassion and perseverance are vital. Don’t forget: You did well before the downturn,
    and take pride in that.
  4. Rebounding: PTSD and fear of being hurt again. Skepticism and hope will hurt or help your investment choice. 
    More Here and Here.