The art of rational decision in dealing with investors

The experiences of daily practice in dealing with investors have produced a clear and inevitable insight: the ability to make one’s own decisions rationally is closely related to how well it is possible to perceive one’s own emotional reactions and to understand their roots. It’s not just about thinking about feelings in theIn retrospect, but rather a profound self-observation that allows you to recognize emotional patterns without being overwhelmed by them. Ideally, this ability should already be developed and refined in normal everyday life so that it works reliably in an emergency. In situations that require acute reaction, such as sudden price losses orUnforeseen market turbulence, it would be fatal to think about strategies or make decisions. This can be compared to a fire alarm: If you still want to consider using the stairs or opening the window in an emergency, it’s usually too late. Instead, you have to know routinely what to do without hesitating.

Routines as the key to the ability to act in crisis situations

It is therefore of crucial importance to train these processes and reactions in advance so that they run automatically in an emergency. It’s about developing automatisms that take effect at the crucial moment so that anxiety and stress don’t block thinking and don’t limit the ability to make decisions. A vivid example of the importance of routine processes isThe so-called “man overboard” maneuvers on a sailboat. After the alarm message, it is clear which steps have to be taken in which order. Without regular practice, stress would overwhelm the team in reality, communication would fail, and in the worst case the casualty could be lost. This example shows the importance of routine, clear structures andRepeated training is to stay calm, efficient and capable of acting in extreme situations.

Emotions as an inevitable part of the decision-making process

When dealing with the capital markets, it shows that the attempt to rely solely on rational arguments in a crisis is hardly crowned with success. Anxiety and stress are not purely mental states, but also influence physical processes that restrict the ability to think clearly and soberly. Ignoring or repressing these feelings tends to make the situation worse.Instead, one should learn to allow negative emotions, observe them and take them seriously – similar to meditation. Only those who recognize the danger, observe and accept it can learn to deal with it. The suppression of these feelings is a fallacy that carries the danger of panicking, acting impulsively and deteriorating one’s own position even further.

The importance of a trusting interlocutor

In such situations, it is particularly helpful to have someone who listens, gives support and not just about numbers, but also responds to the personal feeling. It doesn’t make sense to talk about return expectations or complex strategies in crises. Rather, it is about personal conversation, understanding one’s own fears, about one’s own life plan and responsibilityto people who are cared for. A trusted partner, close friend, or experienced advisor who has been trusted for a long time can be priceless in such moments. This person can help to reduce the emotional burden, to look at the situation objectively and to give clear instructions for action if necessary. The prerequisite is that a stableRelationship was built on mutual trust and commonly defined values.

Stop instead of acting impulsively in times of crisis

In acute crises, it is extremely advisable to avoid impulsive reactions. Instead of acting immediately, a certain amount of time should be used for reflection. This pause is not a sign of weakness, but a protective mechanism against ill-considered decisions. It is advisable to allow at least a few nights to pass before making any major changes to the investment strategythis break helps to calm your emotions, clear your mind and develop a more rational view of the situation. Best practices include writing down goals, setting a mantra for times of crisis, or consciously avoiding fear-inducing media. It is also important to recognize that feelings are temporary and markets are long-termRecovery periods.

Identify deeper causes of stress in managing money

Often, the root causes of stress are deeper and have nothing to do directly with market fluctuations. Factors such as excessive consumption, unrealistic return expectations, high debt or lack of awareness of one’s own financial situation significantly increase the pressure. If these underlying issues are not identified and resolved, setbacks lead todisproportionate pain and frustration. The expectation of quick profits becomes unfulfillable, leading to short-circuit reactions such as panic sales, which often result in even greater losses. Such impulsive decisions not only have financial consequences, but also have an impact on physical and mental health. Professional help and an objective assessment byindependent consultants are strongly recommended in such cases.

Learning from crises and developing resilience

Over time, crises can be better managed. The more often setbacks are experienced, discussed and reflected upon, the less stressful they are. Experience shows that it is possible to come out of each valley and emerge strengthened. The ability to handle market fluctuations more calmly grows with practice. This ability is not an innate talent, butthe result of conscious work on oneself and continuous reflection. The development of stable mental strategies and the building of confidence in one’s own handling of money are central elements of this process.

The strategy of consciously ignoring in acute phases

When all other approaches fail, there is a simple but effective strategy: consciously ignoring. This means looking away from prices in acute crises, no longer controlling the deposit level and relying on the moment until the situation has calmed down. Although this approach may seem irrational at first glance, it is often just the thing to keep the mindto calm down and clear your head. Only when the emotions are under control again can the situation be assessed objectively and smart, long-term decisions can be made. Until then, distance, serenity and the awareness that markets are always recovering in the long run are crucial.

Sustainable action through understanding and conscious self-reflection

The understanding that short-term fluctuations are only part of investing and not the final verdict on one’s own success forms the basis for sustainable action. It is important to recognize the causes of your own stress and not be guided by unrealistic expectations or mismanagement of money. If you are aware of these connections, you candevelop a resilient and stable financial strategy that survives tough times. Through conscious self-reflection, the cultivation of trusting relationships and the learning of routines, a basis is created for dealing rationally and calmly with the challenges of the capital markets in the long term.