Inga Chamberlain Atlanta, GA Hypnotherapist and NLP Master Practitioner

Psychology Of The Stock Market

 The stock market and its downward motion are at the top of the news today.   Market strategists know that when the market drops it creates a psychology of fear and results in the market dropping further and creating even more fear.    Since most Americans have their savings and retirement disappearing at record rates is it any wonder that fear runs rampant today?  The problem with all this is that at some point someone or something needs to create confidence in the markets ability to grow.  The downward momentum needs to be stopped and turned around.   The stock market is a great analogy for the human mind.  When we perceive a threat we go into the "fight or flight" response.   This response is no longer needed in the same way as it was thousands of years ago. Consistently triggering this response is not only physically unhealthy but also creates Anxiety, panic attacks and sometimes even phobic reactions.  This increase in fear, increases stress hormones.  This increase in stress hormones triggers more feelings of Anxiety and fear.  Not only that but excess cortisol actually shrinks the brain.   It becomes an unhealthy downward spiral. Most readers of this article will now be ruminating on the stock market and their brains destruction. But all is not lost.  We may not be able to control the stock markets, or the world at large.  But we can control our perception of reality.  Because it is that perception that creates our world.  Every person has a different perception of reality.  One person might see the market swings as opportunity for personal growth.  While another simply gets so freaked out that they make bad decisions and make their situation even worse. Some great ways to stop the mental spiral are:

  • Take a break from the news. Unless you are going to do something with the information watching things seem to worsen only makes you feel worse.
  • Change the way you think.  By shifting negative, fearful thoughts and consciously changing them to positive you can have a huge impact on your mind set.
  • Get perspective by feeling grateful for what you have.
  • Take some action.  Well considered action will give you heightened feelings of control.
  • Laugh more.  Take the time to read or watch something funny or inspirational. 
  • Get some exercise. It’s a great way to burn off extra cortisol and you might even lose some weight.

And remember, the only thing we can control is our perception of reality.  So choose a better way of seeing things, change your thinking and you change your life.