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Why ‘Keep Calm and Carry On’ should be your investment mantra
Investing can be an emotion-driven game. So, with market volatility likely to continue in 2019, how do you arm yourself with the right knowledge to make sound investment decisions and not let your impulses get the better of you? The key is mastering our instincts and regaining control over our impulses, making the old adage ‘Keep Calm and Carry On’ a good rule of thumb when it comes to investment strategy.
To be a successful investor, it is important to be objective and disciplined when making investment decisions. This means making sure decisions align with your long-term goals. While you would be forgiven if tightening US monetary policy, global trade war escalation, budget conflict between Italy and the European Union, and uncertainty over Brexit prompted you to second guess your investment strategy, making changes off the back of these events can lose you money in the long run.
To better understand and overcome our emotional and behavioural biases, we need to learn to identify when we are about to make a decision based on feelings rather than facts.
The four stages in the cycle of ‘market emotions’ shown below correspond to four common behavioural biases that we see as individuals try to make investment decisions. By analysing these biases, we have identified some tips to help you stay on track with your long-term investment goals.

A wise investor is a calm investor
Markets move, and investments will always go in and out of favour. We can be responsive and keep our finger on the pulse without being reactive and riding every wave. Sometimes it’s the decisions you choose not to make that count more.
By taking the time to reflect on why you make the financial decisions that you do, you are better able to master the instincts and biases that could be losing you money.
So, next time you notice yourself wanting to make an impulse decision about your investment strategy, we encourage you to ‘Keep Calm and Carry On’.
We’re here to help
Have a question about your investment strategy? Give us a call or request a call at a time that suits you. We’re happy to have a chat.
So, next time you notice yourself wanting to make an impulse decision about your investment strategy, we encourage you to ‘Keep Calm and Carry On’.
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