Do you see the clear V shape in the performance of the S&P 500 index?

This pattern indicates sharp volatility, not normal upward and downward movements.

This pattern is a practical lesson, but in a harsh way, and here is the takeaway:
- Do not try to time the market. Simply, no one can.
- Those who sold on January 29 out of panic and fear of a bigger drop missed the big rebound on February 2, while those who increased their position on January 29 gained profit on February 2.
- Those who stayed in the market on January 29 and did nothing recovered all their losses on February 2.
- Take this as a rule: investing without a plan = money burning.
- Your biggest enemy is your emotions; your emotions are influenced by those around you. Without a plan, your emotional reactions are easier and faster.