Thu Jul 31 2025, by Tyler Gardner

Financial TraumaInvesting HabitsEmotional FinanceInvestment StrategyPersonal Finance

How Financial Trauma Shows Up in Your Daily Investing Habits

I'm Tyler, a former financial advisor and portfolio manager. If this is helpful, check out my new podcast, Your Money Guide on the Side, by clicking the link in my bio.

1. Panic Selling

If you panic sell every time the market drops 5%, that might not just be bad investing. It could indicate a nervous system that still remembers the real sting of real loss.

2. Hyper Savers Lack Discipline

Hyper savers often aren't disciplined; instead, they feel anxious, thinking, I’ll feel safe when I hit this number. But that becomes a moving target, constantly shifting.

3. Financial Strategy as a Defense Mechanism

Financial trauma can turn strategy into a defense mechanism. You're not planning; you're armoring up. Sometimes, the best financial decision isn't about rebalancing that portfolio; it's about unpacking why you're afraid in the first place.

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