How to avoid panicking in plummeting markets

Some think that they can time their ins and outs of the market

January 2016 looks like ending with the gains that many investors made last year being wiped out Picture: Pixabay

The psychology of investing can be stressful – especially if it is with money you cannot afford to lose, in which case maybe it should not have been invested in shares in the first place.

It is relatively easy however – psychologically, when you have sailed through a bull run for three or four years and are showing some nice gains and few losses – to be relaxed about a few down days ...