Why Emotional Fit Beats Market Timing

(Olivia Investing Series Part 2)

A laptop on a wooden desk displaying an upward-trending stock market chart, representing emotional clarity and investment confidence

The Market Was Wild — But My Emotions Were Wilder

It was during the Trump-era tariff policies. My portfolio would rise and fall by more than three times my monthly salary — in a single day. I’d refresh the charts repeatedly, wondering: “Do I buy more? Or is it about to crash again?” My decisions weren’t based on data. They were based on fear. I was investing with my nerves, not my strategy.

What I Regret Most Isn’t the Loss — It’s the Mindset

2022 wasn’t the first time I made that mistake. But it was the one I couldn’t ignore. Looking back, the real issue wasn’t the market. It was this: I didn’t understand the environment. I ignored my cash ratio. And I invested beyond what my emotions could handle. The result? More than financial loss — it was mental exhaustion.

The Best Asset for Me? Balance — Not Bravery

I still invest in stocks. But I don’t believe in “perfect picks” anymore. The real asset that fits me is balance —

  • Rebalancing
  • Sector diversification
  • Keeping calm, not chasing peaks

My best-performing asset isn’t a ticker symbol. It’s my asset allocation.

The Price of Believing the Hype

Before the crash, I saw endless ads: “This ETF grew 20x in 2 years.” I got pulled in. But if I had invested only what my emotions — and my life — could afford to lose, I would’ve held longer. Maybe even gained more. Now? I study numbers first. And I don’t trust hype more than I trust peace of mind.

My Emotional Checklist (Yes, I Use It)

These two questions saved me more than any trend line:

  1. If this stock drops tomorrow, can I continue my life normally?
  2. After buying, do I feel calm or unsettled?

If the first answer is “no,” I skip. If the second answer is “unsettled,” I sell — immediately. Because long-term investing only works if you can stay in the game. And nothing kicks you out faster than fear.

📚 Olivia Investing Series

  1. How to Choose the Right Asset (Hint: It’s Not About Returns)
  2. Why Emotional Fit Beats Market Timing
  3. Cash Is Not Lazy — It’s Your Strongest Investing Tool
  4. From Reaction to Routine: My Real Investing Transformation

🔗 Related post

How to Choose the Right Asset (Not the Best One)
→ The first post in this series, about choosing assets based on fit, not fame.

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