How to Stay Optimistic as Stocks Fall

Ugh, stocks. Most people’s stomach churns at the very mention of investing. It’s funny how something so seemingly insignificant as a word can strike fear in the hearts and minds of people.

When managed correctly, finances can be fascinating. If you invest in a stock and it begins to rise, you are suddenly intrigued by its function. But when you see those numbers fall, and the digits that were once green now urgently flash red, you get nervous. It makes you wonder how any of those people on the floor of the stock exchange manage to hear themselves think. How do they do it?

Nothing is certain. This phrase can be perfectly illustrated by using the stock market. It is always changing. The stock market can rise or fall by hundreds of points within a day’s time. Investing is a vast see of turbulence and uncertainty.

But just because you don’t know what the future holds doesn’t mean that you have to suck your thumb in the fetal position for the rest of your financial life. You just need to change your perspective. Here are a few ways to stay optimistic, despite a negative stock market:

This too shall pass—The most important thing to remember is that tough times are temporary. America has seen plenty of ups and downs. But that’s just it—no matter how bad the recession (or in some instances, the depression) the stock market has always recovered. Even though things seem bad at the moment, they won’t stay that way.

Herd mentality—As badly as you may want to run to the next hot stock to try and keep on top of a financial downturn, do so at your own discretion. You will see a lot of success in a down market by investing in trendy stocks while they remain trendy, but you have to know when to get out. Most of the time investors only invest in a popular stock because all of the other investors are doing it. Sooner or later, trendy stocks will take a nosedive. Take your mother’s advice and don’t jump off that bridge even though everyone else is doing it. Place your funds in stocks that you feel are stable.

Whatever you do—Don’t panic. When you freak out, you lose your head and make decisions that you will later regret. So instead of looking at every fluctuation negatively, use a rational viewpoint. Many investors are kicking themselves for abandoning ship when their stock prices fell, only to watch them soar afterwards. A slight decrease in percentage doesn’t mean your stock is failing overall.

Make the right choices—If you tend to be very gung-ho in your investing strategy, you need to get control of the reins. Uncertain economic climates make or break investors, and you should make sure that you are at your full mental capacity in order to best take advantage of the situation.

A poorly performing stock market doesn’t mean that consumers aren’t buying or that investors are balking. It just means that society’s mentality has temporarily become more cautious. This is plenty of reason to be optimistic because all the investor has to do is know the modern culture’s wants, and invest accordingly.