Another Life Lesson from 22 Year-Old JohnThis is an attempt to help you live a better life by learning from my 22-year old self. 22 year-old John was a die-hard Chicago White Sox fan. He put way too much emotional investment into the daily ups and downs of that team. If they had a good day, he was happy. If they had a bad day, he was upset. Not only that, but good and bad was measured by whether or not they were leading the American League Central (not if they were above .500).
My life got a lot better when my friend Ryan laughed at me. He couldn’t believe I was gambling my daily happiness with something completely out of my control. That made me stop and think. Does it really matter whether or not the Sox won that day? Of course not. Did it really matter whether they were better than the Minnesota Twins? Not one bit.
How does this relate to you? I have seen plenty of smart adults gamble their daily happiness on the stock market. It is equally laughable. The daily movements are random. You will drive yourself nuts if you had a bad week last week because your portfolio lost money.
Take the long view. Stocks go up over time. A well thought out long-term plan can have some bumps in the road. It doesn’t require you to react to a bad day, a bad week, or a bad month in the markets. So don’t let the daily gyrations bother you, or affect your happiness.