The emotional pains that come with investing are all too common for investors as well as their advisors. Don’t invest using your emotions. This is easier said than done because unfortunately, when the market goes way up, people tend to follow the herd, get greedy, and buy more.
Warren Buffet once said, “Be fearful when others are greedy and greedy when others are fearful.” Warren suggests this is actually the time when you should be more “fearful” and sell. In contrast, when markets go down, people tend to be fearful and sell when they may actually be better off buying more.
It is best practice to try and leave your emotions out of the investing process. Working with your trusted financial advisor is one of the best methods to help eliminate those emotional pains when it comes to investing.