Principle#1: the pain of loss is stronger emotion than the joy of a gain.
So, when you invest, it’s important to look at the big picture and long-term goals because there will be ups and downs. If every time the market goes down, you give in to the temptation of withdrawing your money, you’ll be losing money in the long run because you won’t take advantage of the upswings that generally follow the dips. Likewise, in OCD, it’s tempting to cash in the short-lived relief that giving in to compulsions provides and forsake the long-term investment in a values-based living that is more profitable in the end.
Principle#2: the more you look the worst it gets.
Investors who are absorbed by all the intermittent fluctuations in the market easily lose their nerves. What’s important is to make sound investments given the information available at the time and reasonably stick to them through bad times and good times. Of course, there is a time to cut your losses, but overall, it’s advisable not to ask yourself too often and too many “what if" questions. Ditto with OCD.