10 Tips for Staying Positive in a Negative Market

This is the guest post by Heather Johnson who is a freelance finance and economics writer, as well as a regular contributor for CurrencyTrading.net, a site for currency trading and forex trading information.

There is a reason why the majority of people steer clear of the stock market – it’s a scary place to be sometimes. Even the most seasoned traders can let their fears or negativity get in the way of good judgment. Those of us who have fallen from a great position know what it’s like to have it all in our hands and lose it in an instant.

Well, that’s enough doom and gloom for now. Being pessimistic in a negative market can only lead to more trouble. Before you know it, you are so scared to trade that you become blind to some really great money opportunities. Below, you will find 10 tips to staying positive when enduring a bear market.       

  1. Keep things in perspective, as a smart investor is in this for the long haul.    

  2. Ask yourself how things will look in 5 years or 10 years from now. If you’ve followed that golden rule of diversifying with predictable stocks, then your horizon shouldn’t be so grim.    

  3. Neglecting your physical health will only make your judgment worse during a crucial time. Eat right, get as much sleep as you can, and try to fit in some exercise to reduce stress.    

  4. Don’t overdo it when the results of your trades begin to die down. Scrambling around in an unpredictable market could only make that headache worse. Back off a bit, pullback some money and collect yourself.    

  5. If you are a professional trader and feel your job security is at risk, tell yourself there are other jobs out there, should it come down to that.    

  6. Remember that you aren’t in this alone. Speak with some trusted colleagues or even reach out anonymously to discuss your frustration on an online financial message board.    

  7. Equate optimism with longevity, as you won’t last very long in the market with a downbeat attitude.    

  8. Read some literature on the power of positive thinking. There are plenty available that specifically relate to personal finance.    

  9. Take a vacation, even if it’s for the weekend.    

  10. Remember the oldest cliché in trading: go with the flow. Everything swings back eventually.    

Is it easier said than done to just wait out the hard times? Certainly it is, especially if you are going to experience big short-term loss or even problems with your job security. However, trading with a negative attitude will always snowball into making poor decisions.

Also, it just doesn’t help the problem at all to be pessimistic. You knew, going into the stock market, that times could get rough. Remember, you should be in this for the long run.


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3 Responses to “10 Tips for Staying Positive in a Negative Market”

  1. The Personal Financier Says:

    Another Edition of the Investment Basics Carnival

    Welcome to another edition of the Investment Basics Carnival. I’ve picked the following articles because I believe they offer added value. I’ve added my own thoughts to each article. Hopefully you’ll find them stimulating.

  2. Carnival of Making Real Money: 18th Edition April 1st, 2008 | InvestorBlogger Says:

    […] Heather Johnson presents 10 Tips for Staying Positive in a Negative Market posted at Investing Blog. I think this is some advice we could all use! […]

  3. InvestorBlogger Says:

    And #11 prepare an emergency fund so if things go bad, you’re okay!
    Kenneth

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