Keeping your discipline after markets fall | Summary and Q&A

October 6, 2023
The Evidence-Based Investor
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Keeping your discipline after markets fall


Maya Statman emphasizes the importance of maintaining discipline during market fluctuations and highlights the value of financial advisors in preventing impulsive decisions.

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Key Insights

  • ❓ Maintaining discipline during market volatility is essential in equity investing.
  • ⌛ Timing the market successfully is exceedingly difficult due to its unpredictability.
  • 🔉 Financial media should be approached with skepticism, as even experts may have conflicting opinions.
  • 🛟 Financial advisors serve as a valuable resource during market downturns, providing guidance and discouraging impulsive decisions.


foreign Corrections and bear markets are an integral part of equity investing it's very important during those periods that investors keep their discipline Maya statman the behavioral scientist says you need to remember that timing your exit from the market and then your re-entry is extremely difficult people see trading as the equivalent of playin... Read More

Questions & Answers

Q: Why is timing the market difficult?

Timing the market is challenging because it is unpredictable. Traders may attempt to make strategic moves, but they often find themselves going against an unexpected turn of events or misjudging the market's direction.

Q: How should investors approach financial media?

Investors should be cautious when consuming financial media. Just because someone looks like an expert doesn't mean they have all the answers. It's important to remember that experts can have differing opinions, and their predictions may be nothing more than educated guesses.

Q: Why is a financial advisor valuable during market downturns?

A financial advisor serves as a crucial resource during market downturns. They can offer rational reasoning, explain market realities, and discourage making impulsive decisions based on panic or fear.

Q: What is the benefit of waiting before making investment decisions?

Waiting for a couple of weeks can help investors cool down and reassess their decisions without being influenced by short-term market fluctuations. This waiting period allows them to gather more information and make more rational choices.

Summary & Key Takeaways

  • Foreign corrections and bear markets are normal in the world of equity investing, and it is crucial for investors to stay disciplined during these periods.

  • Timing the market is extremely difficult, and it is important to question your own knowledge and expertise compared to others.

  • Financial media should be approached with skepticism, as even supposed experts may have differing opinions and be making guesses.

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