Last week (24.02.2020 - 28.02.2020) we've noticed one of the worst weeks in the financial world since the Global Financial Crisis in 2007-2008. Just for a week the USA Financial Indexes had fallen with more than 10% which brought them to recession levels pretty quickly similar to the 2007 events. How that reflected on the world and what caused it?
Thanks to the COVID-19 outbreak which happened at the end of February 2020 and the heavy measures which China took in order to limit the potential damages from it the whole world felt it. That brought panic to everyone and the whole world started to work on "emotions" which is usually the worst case scenario. Gladly we've bypassed the worst financial crisis again and economics are starting to get back to previous levels which is the good news.
Although I would love to write more about economics and financial markets, this article is not about that. In this article we'll see how market recession and panic reflected on our everyday lives, and how we can protect ourselves from "recession in our personal life".
Ups & Downs
As you know life has ups and downs. Growth and losses which works exactly the same as the financial markets do. So when you are experiencing a lot of success on a streak, you should keep in mind that a correction is coming. Why is that?
Everything in the nature should be balanced in order to work properly. A lot of success means you'll hit your targets too fast before you are ready for the next thing, that's why there must be a correction which will slow the things down. And that's just how nature works. What happens if you don't handle the correction properly?
If you notice a coming problem but ignore it, usually a correction will grow to a recession and then to a crisis but we'll speak for that in other article. That kind of unfortunate event happened in the world last week with the outbreak of COVID-19. China noticed the problem but the rest of the world ignored it and that brought us to the pre-pandemic panic situation where people were buying everything from the stores and preparing for the end the world.
That on my opinion is the best example for what happens when you notice a coming problem but choose to ignore it. So...
How to handle the problem and protect yourself?
Although I wrote this article, I've experienced the whole thing on my shoulders just like everyone else. When the panic began we had a working trading robot which made 50% in losses just for a day (27.02.2020) and that's the day when the recession started for me.
Even that I knew about the problems in the world, I chose to ignore them and that cost me a lot of time, money and most importantly health. So what to do in such cases?
If you hit that point where you are thinking what to do but nothing works out well and you are struggling you should just stop. Take a deep breath and accept the consequences. Surely it's not the nicest thing but that's the correct way to handle the situation. Once you manage to stop panicking it's time for you to regenerate.
Take some time off, go to a place where you love to be, speak with someone who can connect with you. Connection is the most important thing in those kind of situations. Even if you don't share exactly what happened and what's the problem or you don't speak on that topic at all, simply a connection with someone will help you more than you can imagine.
What I've done in order to get back on track?
As mentioned above taking some time off is the key. I chose to go on a small trip. Leaving your country for a while can be half the way from escaping the toxic thoughts. When we've decided to go out I knew that I should stop thinking about the problem in order to achieve a complete regeneration. So I just set back, relaxed and enjoyed the trip.
Once we got back I decided to visit an old friend which I haven't seen for a while. The moment after that meeting was the moment I've felt that everything is getting back to normal and I'm ready to start fixing the problem which caused the whole thing.
When you see a coming problem try not to ignore it. Even if that happens remember the most important thing - don't panic. Life is life, it has it's ups and downs!
I hope this article was interesting for you and most importantly you'll found it valuable for you. Thank you for your time!
Original blog post was published in my LinkedIn profile, check it here.