How do you stay rational?
"I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts." Bill Ackman
Easier said than done!!! Was just talking to my coaching group about the stock market being sometimes a roller coaster ride, driven by the emotions of the market participants.
However, you can see that as a FEATURE of the market, and the PRICE of entry. If it were that easy, everyone would just get on and be done with it. At the same time, that FEATURE (ie the volatility) is what gives us the opportunity to invest in good, sound companies, at a great price.
One way to get around this roller coaster of emotions is to put in place an investment checklist. This forces you to consider the key fundamentals and drivers of the business.
Avoiding companies that do not meet the checklist requirements will keep you out of trouble. On the other hand, knowing that the companies you invested in met the checklist requirements keep you on the train!
Keep on keeping on.