1. Question your thoughts
In order to change your mindset positively, it helps in most cases to deal with your thoughts and to question them. If the current situation makes you worry that your stocks will soon be worthless and you will come out of the crisis with substantial losses, you should ask yourself the following two questions:
Are you pursuing a long-term investment strategy?
Did you thoroughly study the company’s business model and key figures before buying the securities?
If you answer “yes” to both questions, your negative thoughts and worries are unjustified. After all, you were previously convinced of the companies and assumed that they were financially well positioned. For these companies, such a crisis will not have a major negative impact in the long run and the share prices will recover in the long run. So no need to worry and get rid of the negative thoughts.
2. Focus on the positive
The problem with such crises, like the Corona crisis, is that you are only confronted with negative news from all sides. Here a company goes bankrupt, there a stock slides and more and more people have to go on short-time work and even lose their jobs. So it’s no wonder that many investors panic.
In such situations, you should try to focus on the positive. Every crisis has passed before, and prices that slip once also recover again. It can help to look back at past crises and see how many people have also benefited financially from them. If you internalize this, the whole thing won’t look so bad anymore and opportunities can be seized much better.
3. Do not focus on the losses
What will inevitably happen in such a situation is that your securities account will keep recording new losses. As long as the prices are falling, it is therefore not advisable to constantly check your portfolio. What happens there are only book losses for the time being. So don’t think about how much you might be losing: as long as you don’t sell your securities, you won’t have any losses to report.
4. Seize the opportunities that arise
A crisis on the stock market is naturally associated with many negative thoughts. But this is not exclusively the case. In such times, investors also have many opportunities, as shares of high-quality companies are traded cheaply. So focus on finding such companies and see if they can add value to your portfolio.
5. Continuously educate yourself
No matter how long you have been in the stock markets, there is always something to learn. So get relevant books and keep yourself updated all the time. Continuing to deal with the subject creates a certain security, which gives a good feeling especially in the current uncertain times. But also in the long run it makes sense to look into other investment strategies.
Having a positive mindset is an essential prerequisite for being financially successful. Keeping a cool head during this time will separate the successful from the unsuccessful investors in the long run and you will come out of the crisis profitable.
