When times are good, we must celebrate our excess investment returns because we sure as heck aren’t celebrating when times are bad! When times are bad, it can feel downright terrible due to a psychological concept called loss aversion. The pain of losing $10,000 often feels far worse than the joy of gaining $10,000.

When it comes to stocks, gains can vanish quickly since much of a stock’s valuation is based on investor confidence. If the outlook suddenly turns less optimistic, it can take a serious toll on your portfolio.

Because of this, it’s crucial to balance the scales by celebrating even harder when we experience investment wins. This mindset becomes even more important as we age and confront our own mortality. Here’s how to recognize and enjoy your excess investment returns while maintaining financial discipline.

Calculate Your Excess Investment Returns and Celebrate

Here’s what I want every stock

Keep reading this article on Financial Samurai.

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