Tips to Stay Calm During Market Volatility
It is thrilling to keep tracking the day-to-day ups and downs in market volatility for most investors. Seeking insight from a professional expert can be interesting and helpful at the same time. I recently met with Indian investor Rajesh Mehta, whose experience exceeds over two decades with the Indian stock market. He shares with me his strategies for maintaining a calm mindset and making rational investment decisions even at the most turbulent times, with his consent.
1. Long-Term Mindset
Rajesh states that, in his opinion, an investor has to look above the market volatility of short-term market situations. “Investing is planting a tree; you do not check how it is long after every passing day. Rather, you nourish and let it grow over time.” He never gives much emphasis to short-term objectives and concentrates instead on the daily price changes while avoiding all emotions that have haunted short-term traders.
2. Mindfulness and Meditation
Mindfulness is one of the psychological techniques Rajesh says he relies on. “I begin my day with 20 minutes of meditation, which helps me stay focused and make clear decisions,” he says. Through meditation and deep-breathing exercises, investors stay calm and refrain from panicking in response to market volatility.
3. Market Cycles
He insists on studying the history of markets. “Volatility is a natural part of the market cycle. Bear markets have always been followed by bull markets,” he says. This way, investors are in a better position to follow the cycles and not take rash decisions due to fear during market volatility.
4. Reduced Market Noise
This aspect convinces him that one has to filter unnecessary extra financial news and speculations on social media. “I look at markets just once in a day and do not go through headline-driven panicking reads,” confesses Rajesh. This makes the stoppages of negative news shield his peace of mind toward an effective mental sense, more directed toward an application of sense as opposed to sentiment.
5. Setting Stop-Loss and Exit Strategies
This, to Rajesh, is perhaps the most critical discipline he upholds in investment planning: to avoid the fallacy of an emotional decision that will be fueled by stop-loss and exit strategies. “I set predetermined exit points for my investments so I won’t behave impulsively during a market downturn,” he says. He does not allow fear but remains in control.
6. Portfolio Diversification
“Diversification is the answer to stress management in activities,” says Rajesh. He made sure that he kept diversifying in the portfolio related to asset classes, like equity, bonds, realty, and gold. Dividends here cushion losses by gains in some other sector, making the portfolio somewhat balanced.
7. Networking Support
Rajesh surrounds himself with similar investors and mentors, which helps him to be logical. “Whenever I feel unsure, I discuss my doubts with fellow investors who have gone through such market situations,” he says. Having a support system provides perspective and helps avoid emotional decision-making.
This is the blend of financial discipline and psychological resilience applied by Rajesh Mehta while dealing with market volatility. If an investor takes a very long-term view, remains mindful, diversifies investments, and stays rational, there cannot be a huge concern during turbulent market moves due to market volatility.
If you often feel stressed during market swings, try these tips while making that one rational investment decision.
