Next thing I know, she'd already done it. Sold everything and locked in her losses.
Not even a few days later, the market bounced back. Like it always does.
If Emma had just held on, she'd be fine. She’d be up from where she started.
Instead, she's sitting on cash, kicking herself.
This isn’t to bash Emma (btw I asked her if I could share her story)
Or anyone else who’s made similar mistakes!
Emma didn't lose money because she invested. She lost money because she reacted.
The market drop wasn't the problem. Markets drop all the time. That's completely normal behavior.
The problem was she had no framework for what to do when it happened.
She knew index funds were good investments. She'd done her research.
She understood the basics.
But she hadn’t lived through what a market dip feels like in real time. How scary they are.
But also how normal they are. And how to sit through them without panicking.
Information without emotional preparation fails every single time.
Emma knew what to invest in. She just didn't know how to behave once she'd invested.
That's the piece most beginners skip. And it's the piece that can cost them.
Three things Emma learned (that you can use):
1. Expect 10-20% drops every year. This is normal market behavior. Not failure. Not a sign you made a mistake. Just normal.
2. Have your "if-then" plan before you invest. Decide now: "If the market drops 10%, I will do nothing and hold." Make that decision when you're calm, not when you're panicking.
3. There will be positive growth if you hold broad market index funds long-term. Every major dip in history has recovered. Every single one.
Emma's open to getting back in now. After some coaching, she understands what went wrong.
She's building her system this time, not just her portfolio.
This is exactly why Step 3 of Sunday's free workshop (Oct 26th) focuses on "Core Principles to Make Sure You Don't Lose Money."
I'll teach you how to handle the emotional side of investing.
What normal market behavior actually looks like. And the system that prevents panic-selling.
Register free: nischa.me/invest
Because knowing what to invest in is step one.
Knowing how to behave once you've invested? That's where real investors are made.
Talk soon, NISCHA Xx
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