The markets have been volatile lately. Very volatile.

After so many years of stocks going up, people are getting scared.

Most people operate on fear and greed when it comes to their investments or finances.

When the markets are booming and everything is going up up up, everyone wants to jump onboard. Ride the wave.

It’s more of a feeling of missing out. People don’t want to be the ones left behind as others, friends, or family make big windfalls and we make nothing.

So we jump in with the “hot” ticket items. Crypto, cannabis stock, tech stock, etc. There is always the next new best thing that is going to “take off.”

Then what happens when the market and stocks turn south? People get fearful. They start pulling out or selling at a point when they are down or have lost 25 % or maybe 50% of their investments.

Why?

Why do people act this way?

Fear and greed.

A successful investor knows that there will be ups and downs in the market.

Sometimes the swings are short lived. Sometimes they last for years.

But there is always a “balance” in the market place. What goes up must come down and vice-versa.

In 2007 or 2008 when the markets were crashing, I remember reading a quote by Warren Buffet. I don’t remember his exact words but the message was clear; “Everything’s on sale, I’m going shopping!”

And to this day that is how I invest.

If a stock is going up, I don’t try to jump on the bandwagon. That train has left the station already. It’s like shutting the barn door after the horses have run out. To late!

But if a stock have come down from it’s highs, everyone starts to sell. That’s when I get in. I buy at fire-sale prices!

Why?

I do the opposite of the norm.

The majority of the people in this world are unhealthy, don’t like their jobs, and are just plain unhappy. So, why would I follow what the majority of people are thinking or doing. I do the opposite.

Do what the successful, healthy, happy people are doing. (And unfortunately, they are the minority.)

I want to be a minority when it comes to my stocks.

When people are selling, I’m buying. When people are buying, I’m selling.

Still, when the markets continue to go down, it can be concerning. (Just like they are now.)

That’s when I turn to a copy of Rudyard Kipling’s poem,“If.”

I sit in a comfy chair, away from all distractions and read it.

And these two phrases always jump out at me.

“If you can keep your head when all about you are losing theirs…Yours is the earth and everything that’s in it.”

So, when the heat is on, stay in the kitchen! Because dessert is just around the corner!

Happy Investing.