I Watched My Portfolio Crash 34%. The One Question That Stopped Me From Selling.
March 2020. I watched €90,000 drop to €60,000 in one afternoon. I called my wife. She asked me one question.
What you'll learn
- What a 34% portfolio fall feels like
- Why loss aversion makes crashes harder
- How to avoid emotional selling
I Watched My Portfolio Crash 34%. The One Question That Stopped Me From Selling.
The screen turned red
A market decline feels different when it is your own money.
The brain wants the pain to stop
Loss aversion makes losses feel disproportionately important.
The dangerous prediction
The mind can turn a temporary decline into a prediction that it will continue forever.
One question changed the decision
The question about whether the portfolio was really going to zero separated fear from the investment thesis.
The plan must work when scared
A strategy is only useful if you can follow it when markets are falling.
What a Falling Portfolio Taught Me
The deeper Mike Petry Journal essay connected to Episode 16, exploring the idea behind the episode from the perspective of money, behaviour and financial freedom.
Read the essay on Mike Petry Journal →What is Episode 16 about?
March 2020. I watched €90,000 drop to €60,000 in one afternoon. I called my wife. She asked me one question.
What a 34% portfolio fall feels like
A market decline feels different when it is your own money.
Why loss aversion makes crashes harder
Loss aversion makes losses feel disproportionately important.
Educational and entertainment content only. This page is not financial advice. Do your own research or speak with a qualified professional before making financial decisions.