Such extreme movements can create lot of anxiety and stress and can lead to impulsive and irrational decisions. Fear of losing is greater than the happiness of gaining. When markets are in downtrend people avoid investing when things are available at reasonable levels. 24X7 flow of news, data, and market noise compounds the problem by prompting investors to constantly act or react due to Fear of Missing Out (FOMO), severely impacting investment decisions and resulting outcomes. Systematic Investment Plans (SIP) is one of the best ways of disciplined investing for the long term with peace of mind.

Source: Economic Times June 04, 2022 05:23 UTC