This week we are looking at Be a Stoic Investor.

The stock market is the best self-development tool available to us. It brings out every emotion we have in full force. Check out the chart below outlining the different emotions associated with a stock price.

This is a good representation of how you can view stock price in a different way to become a little more stoic when it comes to investing. This is simply a way to view price action with additional depth. The way you can use this is to ask yourself, “How do I feel about this investment at this time?” Chances are if you are feeling “Panic,” other investors are as well. This is why it is important to have rules based on a sound philosophy.

Chances are if you are feeling these emotions beyond your control, it is too late. Every action taken in the market is best taken from premeditation and an unsurprised outcome. The bottom line is no one knows the future direction of any price and every precaution can be played out ahead of time. Know your rules, what you will do if and when something happens and accept all the outcomes before the investment is purchased.

This is strategy. This is how one grows as an investor. This is how one controls risk and stays away from acting from emotion.