Last night, the stock market erased over $2 trillion in less than 20 minutes
That's a rate of about $125 billion per minute; that's pretty insane!
This is certainly an unusual event, unprecedented. Yesterday, in after-hours trading, the volume of transactions in ETFs was the highest since records began.
And today? Screens are red like blood, goods are being dumped like trash, and investors are in shock: new investors feel they mistakenly entered the big players' game.
What to do?
This is not an easy day for investors, and certainly the channel's followers here feel it keenly.
So despite the heavy workload on such a day, we at the Hot Alerts team thought throughout the day about what to write to you, dear followers, on this day.
Our message: don't let emotions bring you down.
And from this, the post about the investor's greatest enemy: emotion, was born.
The investor's greatest enemy: emotion!
Many believe the investor's enemy is the market, the regulator, or even the Fed. But the truth is that every investor's greatest enemy is their own emotion.
The market is a battlefield, and the enemy is within you.
If you think the success of your investments depends only on technical analysis, multiples, cash flow, or macro analysis, you are wrong.
90% of wrong decisions in the stock market do not stem from lack of knowledge, but from emotional influence!
Fear: causes you to sell during downturns when everyone is in a panic. Greed: causes you to buy at the peak because everyone else is doing it. Blind hope: keeps you in a crashing stock because "maybe it will go up tomorrow." Despair: causes you to exit the market just before the wave turns back up.
Don't be tempted to follow emotion.
The psychology of loss: why emotion always works against you?
Human nature is not built for the stock market. Our brain is programmed to survive, not to invest. When we see declines, our brain identifies danger and puts us in "flee!" mode. When we see gains, it signals "the money is here! Run!"
But the market rewards those who think differently: buying when everyone is fleeing and selling when everyone is celebrating.
So how do you defeat this enemy?
Enter with a clear plan: before investing, decide in advance the exit price, the limits, and how much to risk.
Ignore the crowd: emotion controls the stock market because everyone acts out of fear and greed.
Learn to wait: great investors like Buffett succeeded because they knew to do nothing when emotions ran high.
Be aware of the enemy: understand that emotion will always try to trip us up, and know to stop and ask: "Am I acting out of logic or fear?"
Always ask yourself, 'Why did I buy the stock in the first place?'
'Has anything fundamental in the company changed for the worse?'
Learn to look deeply into the chaos and not flee out of fear and despair.
Remember, in the stock market things can move very quickly, sentiment changes in an instant, and sometimes when it's darkest, I'm already nearing the exit from the tunnel.
Ultimately, in the stock market, it's not the smartest who wins, but the coldest.
The market is a game against yourself. If you control emotion, you win. If you let emotion control you, you lose.
So the question is: are you a master of your emotion, or its slave?
The Hot Alerts team is working diligently on a comprehensive summary of the entire tariffs story and its full effects on the economy and the market.
Stay with us, we will continue to update.