Most investors were plagued by crashing star stocks - Tesla and Apple .
$Tesla Motors(TSLA)$ shares made fresh lows to start the year, falling over 12% today.
$Apple(AAPL)$'s market value dropped below $2 trillion for the first time since March 2021.
I believe most tigers are confused about what should I do to deal with the crashing stocks. When will Tesla and Apple stop the plunge?
Nobody can time it. But our fellow tigers give us precious suggestions.
1. @BenjiFuji said: Keep calm, keep sane, stay logical
The last thing you want to do is irrationally sell everything that you have worked hard for andchange it all into cash.
I am avoiding companies that are clearly out of my circle of competency. If I do invest in higher risk companies with poorer fundamentals, I must be willing to take the hit.
Enjoy the ride and learn
Finally, I will learn to enjoy this exciting experience and learn more, not just from others, butalso about myself. Who I really am.
Tough times don't last, tough people do.
You can click What to do in a sea of red to learn more.
2. @JC888 offered plan B and 4 steps:
1. Do not panic. Is this important ?
It is because :
(a) it could have been the widely practised manipulation by the bigger boys attempting to inject just the right amount of fear;
2. Don't take too long a time to react. Is this contradicting above #1. Not necessary.
......
To learn more about his suggestions, you can click Timely question to be pondered over by every investor no?
3. @ngph also emphasized no panic selling
If the company fundamentals have not deteriorated, but its stock price is depressed by poor market sentiments, I'll take the opportunity to load up on the shares.
Remember that price is what you pay, but value is what you get.
To learn more you can click In a market crash, I'll try to remain calm and not to succumb to panic selling.
4. @Bonta: Wearing gloves to catch falling knives
Stocks:
1. Every 1-2 days that market trend down, I will Buy more to add to my stock portfolio
2. Add small quantity per transaction, so that there is sufficient firepower to keep on adding
Options:
3. alternate between Selling put options instead of buying stocks, so that portfolio margin can be utilised instead of using cash to buy stocks.
4. Selling OTM put options so that there is buffer of safety
5. Rolling ITM put options In the event that stock plunge below option strike price. Buy time for the stock to recover or reduce the losses.
6. Selling call options to reduce the impact of market falls.
Bear markets are the best time for us to buystocks at great discount.
You can click Wearing gloves to catch falling knives to learn more about it.
5. @yuannn gave us three tips:
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.
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.
You can click What to do when the market is up and down to learn more.
Thank you for your excellent suggestions to all of us. The above 5 tigers will get 200 tiger coins.
Welcome more tigers to join our topic: What would you do in a market crash?
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