2. Don’t be a catastrophic thinker
Practice not expecting the worst scenario
Markets won’t recover from a dip
Look at historical data
Discouraging world events
Review past devastating events and their outcomes
Control your fear
Identify best case possibilities and determine how
likely they are
Weigh evidence and facts available and develop
realistic contingency plan for coping with the situation
3. Examine your approach to explaining events
We should all be market optimists.
Not “Rose Colored” Optimists, but based on
market reality
Avoid the blame game
Negative emotion is seldom helpful in managing
or dealing with difficult situations
Permanence and pervasiveness are thinking patterns
that don’t work well in difficult situations
4. Over generalization
View single temporary event as permanent state of
affairs
Jumping to Conclusions
Wait for all the facts before coming to a conclusion
Exaggeration or magnification
Mountain out of a molehill
Minimization
Discount the positive
Emotional Reasoning
Assume the way we feel is the way things really are
Not being objective