What to do when the market is up and down

yuannn
2022-10-08

The stock market has been up and down recently, and as a senior investor, you should have encountered a lot. However, as a novice investor, if you see such a scene as soon as you enter the stock market, you will not only be shocked, but may also become at a loss. How should we do it at this time?

In the day when the market fell sharply, some people hurriedly escaped, and some people took the lead in taking the opportunity to buy goods. The crisis and opportunity of investment are actually a fine line.

Actually, the reaction that can be done in a big market is inseparable from the following 3 steps:

1) Wait and see: Be very calm and decide the next step after seeing the situation clearly.

2) Retreat first: When stock market has plummeted, clear positions first.

3) Take advantage of the falling market to grab bargains: Just as Warren Buffett said, when people panic, I am greedy, and I am greedy when people are panicking.

Whether these responses are right or wrong can only be known in hindsight. But if you know more about them before taking action, you can reduce the chance of making mistakes even if something unexpected happens.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Lynn098
    2022-10-08
    Lynn098
    Options allow you to profit whichever way the market moves
  • Henryee18
    2022-10-08
    Henryee18
    Gosh, now now money all trapped in the stock coz of down trend
  • liewtc60
    2022-10-08
    liewtc60
    DCA with margin of safety at strong support level for quality stocks.
  • jas68
    2022-10-08
    jas68
    okay thanks for sharing
  • NEWBIE
    2022-10-08
    NEWBIE
    thank you for your analysis and information
  • AetherC
    2023-01-06
    AetherC
    Ok
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