The stock market is constantly fluctuating, which can be very stressful for investors. However, you can effectively manage this stress by using a few strategies.
1. Change the time frame of your chart
Daily volatility in the stock market can be quite high. This is especially true if you're using a daily chart. Seeing the ups and downs throughout the day can make many investors nervous.
However, things change when you change the timeframe of your chart to weekly or monthly. Over the long term, the daily volatility of stock prices becomes relatively small. For example, if you look at a chart of the KOSPI over the course of a month, it might seem like there are big swings on each day, but on a monthly chart, the swings are smoothed out.
2. Focus on other activities
If you find yourself staring at the stock market all day because you're obsessed with its fluctuations, try focusing on other activities. Take your mind off the stock exchange for a while by diverting your attention to other activities, such as watching a movie or a YouTube video.
Different content, such as a movie or YouTube video, will take your mind and thoughts to a different place, which will relieve stress and put you in a more relaxed frame of mind.
3. Control your stock allocation
Some people get overly enthusiastic and greedy and invest in stocks beyond what they can afford. If you're feeling stressed by your stock investments, you may need to adjust your allocation.
For someone who prefers stable investments, the volatility of stock investing may be too much of a stressor. In this case, try reducing the amount of stocks in your portfolio to a level that matches your comfort level.
4. Keep a long-term perspective
The stock market is like the ocean. When you look at the waves in front of the ocean, they may seem enormous, but if you look down on the ocean from a high mountain, the waves are just small ripples.
The same goes for the stock market. When you look at the market from a long-term perspective, current volatility becomes relatively small. Instead of focusing on the day-to-day fluctuations of the market, focus on the big picture of long-term economic and company value growth.
How can you avoid stressing about the stock market? Take the long view by changing the time frame of your charts, and clear your mind by focusing on other activities. If necessary, adjust your stock allocation to get back to your own comfort zone. Finally, maintain a long-term perspective that allows you to see the entire ocean in the distance, not just the wave in front of you.
