How to Gain the Courage to Invest in a Downtrend?

Logically we know that a pullback is the best time to buy, but emotionally when we see the stock market is red we dare not make a move. ------ [TOPIC] How do we gain the courage to invest in a downtrend?

Having the courage to invest in downtrends Investing in a downtrend can be daunting, especially when market sentiment is overwhelmingly negative. However, history has shown that downtrends can present unique opportunities for those who approach them with courage and a well-thought-out strategy. Here’s how you can be brave and invest wisely during a downtrend. 1. **Understand the Market Cycles** Markets move in cycles, typically characterized by periods of expansion (bull markets) and contraction (bear markets). Understanding this cyclical nature can help you stay calm during downturns. Remember, bear markets are often followed by bull markets. By recognizing that downturns are a natural part of the market cycle, you can mentally prepare yourself to take advantage of the opportunities they
avatarBarcode
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$AMC Entertainment(AMC)$ $Rocket Companies(RKT)$ $AstraZeneca PLC(AZN)$ $Plug Power(PLUG)$ $SNDL Inc.(SNDL)$  🌟🌟🌟📈 Small Cap Stars: Can They Keep the Momentum Going? 🌟 🌟🌟 📈 Kia ora Tiger traders, Let's dive into the vibrant world of small-cap US stocks! The Russell 2000 index showcased a fantastic rally post-June inflation data, while the Nasdaq 100, housing the tech titans, took a tumble. This sparked a clear rotation, but can small caps keep up the momentum? In a bear market, savvy investors know that the Russell 2000 is a treasure trove of opportunities. 🌟 Focus on defensiv
avatarBarcode
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$Lockheed Martin(LMT)$ $Veeva(VEEV)$ $UnitedHealth(UNH)$ $Coca-Cola(KO)$  🌟 🧸💪📉How to Find the Courage to Invest in a Downtrend Bear Market 🌟🧸💪📉 Kia ora Tiger traders, I have recently invested in Commons for UnitedHealth Group (UNH) and Veeva Systems (VEEV) because I anticipated the seasonal weakness and the onset of a Bear market. Recognising the potential for a downturn, I strategically positioned my portfolio in these defensive stocks to mitigate risk and seize opportunities. Now, let’s talk about another gem in the rough—Lockheed Martin (LMT). I believe LMT is one of the absolute very best stocks to be invested in!

How to Gain the Courage to Invest in a Downtrend?

In previous articles, we discussed good ways to endure a downturn. Tiger @BenjiFuji mentioned that he/she wouldn't endure but celebrate, as it's finally a buying opportunity. However, as an ordinary investor, I worry about buying at the beginning of a downtrend.So how do you gain the courage to bottom fish?Is it the power of belief we discussed yesterday? We need to believe not only in ourselves but also in the stock or CEO turning things around. Some say, if you believe $Tesla Motors(TSLA)$ will ultimately solve FSD (Full Self-Driving), then any time is not a selling opportunity.If you find it hard to believe in people, would you trust technical indicators?Nowadays, many use AI for trading an
How to Gain the Courage to Invest in a Downtrend?
I think learning to hedge using options is a skill that investors as well as traders should have in their arsenal. I decided to hedge my downside risk when the market rally started to get shaken by inflation news, jobs data and news of a hard landing and also the spike in the vix (volatility).  I hedged by buying $NVIDIA Corp(NVDA)$  and $Invesco QQQ(QQQ)$  puts as NVDA was my largest position. Why didn't I just sell my NVDA and buy the dips? That's because my average cost on NVDA is really low and I'm still bullish on NVDA and would like to keep my position. The hedged allowed me to hold my entire NVDA position without it losing value, potentially lowering my average cost even fut
avatarShyon
07-28
I did tried to catch the bottom fish but it was not always a successful attempt. Nowadays, instead of blindly catch the falling knife, I will set a minimum criterias for my reference: 1. Only target great companies with stable fundamental. Never do it at those companies without guarantee or proven financial growth for the past few years. 2. Get some basic technical indicators to help you. For example, the entry can be attempted near recent neckline or EMA support. You may also refer to the RSI for oversold signal. Just get one strategy that suit you the most. 3. Divide your entry into a few batches. Never buy in at one go especially during a downturn. Split your entries into few times to diversify your risks. Come and share your strategies with everyone too!
thank you, @Tiger_comments, for this interesting yet thoughts-provoking. Investing during a downtrend can be challenging but can offer opportunities if approached with caution. Here are my takeaways to help gain the courage to invest: Research and Understand the Market: Educate yourself on why the market is down. Understand the underlying causes—whether they are temporary or indicative of deeper issues. This will help you distinguish between short-term volatility and long-term potential. Diversify Your Investments: Spread your investments across different assets to reduce risk. Diversification can help mitigate the impact of a downtrend on your overall portfolio and provide more stability. Focus on Long-Term Goals: Keep your long-term investment goals in mind. Downtrends can be unsettling,
It is a Good Idea to Keep Investing Through the downturn.  Over the long run, the stock market tends to go up and the economy grows. While bear markets may interrupt this otherwise bullish trend, these downturns always have ended and ultimately reversed, reaching new highs. By investing through bear markets, you can buy stocks when they are priced lower and accumulate stronger positions. Dollar cost averaging is a good way to start. Start small and keep buying through the downturn. In the long run, the price of the stock will appreciate. Wait patiently and you will be rewarded. 
good times bad times, life goes on... same with investments... take it as a bonus that during bad times, good stocks can be purchased at a good price [Chuckle]  [Chuckle]  [Chuckle] ... most of you already commented in the post so shall not flood you with posts. tagging those who had not being tagged... sorry if I've missed anyone... @rL @GoodLife99 @
good times bad times, life goes on... same with investments... take it as a bonus that during bad times, good stocks can be purchased at a good price [Chuckle] [Chuckle] [Chuckle]... most of you already commented in the post so shall not flood you with posts. tagging those who had not being tagged... sorry if I've missed anyone... @rL @GoodLife99 @HelenJanet<
avatarRXU
07-25
Wa lau eh, i not too trusting of AI and trading models. They looks nice on IG reels but if so good, then everyone will 100% win then who take the losses? I think we can use them to give clarity to our analysis and guide us to our own decision in a step by step and logical manner. Blindly believing is as gd as getting a hot tip from a  "friend". same goes for bottom fishing, we gotta be smart about it. Do homework, see if the price is bouncing back, spread your bets, set some limits, and be patient. Say no to giving blind faith in AI or gut feelings alone. Trust in the community of Tiger for collective advice and wisdom, lol
avatarAqa
07-26
Invest in a downtrend and “Buy low to Sell high" means “Be greedy when others are fearful “. It is the best strategy to make profit. One needs courage and confidence to go against the tide even when dealing with stocks that have good fundamentals. That can be achieved by taking a more objective view to make a more informed decision. Consider other factors such as moving averages, the business cycle, and consumer sentiment. With the objective method of determining whether it is time to buy, one should be able to trade with courage. Good luck! 🚀🚀🚀 Thanks @Tiger_comments
avatarAN88
08-01
By making sure only invest on your extra cash
Only buy share of the company that u have believe in their products and business model that are doing very well. Of course u need also to ensure that the company is having profits after deducting operations cost. Lastly, u will not be able to buy at the very lowest price, but u have to ensure u are buying with extra money that u can hold on the shares for the next 3 years.
My courage soars thanks to Tiger Broker's stock vouchers! With the market in a downturn, I'm thrilled to snag awesome companies at a discount. The vouchers are the icing on the cake, making me a happy investor as I scoop up quality stocks at a bargain!
Replying to @MasterStonker:well said well said. if I can transfer tiger coins to u, I give u 5 coins 🤣🤣🤣 @SPACE ROCKET @Barcode read @MasterStonker's comment//@MasterStonker:You need the money first. Courage comes 2nd 🤑🤑🤑🤑🤣🤣🤣
first you study the companies and identify the support levels. second keep dry powder. and finally during pullback like now, close eye and buy once support levels are reached. so simple.
Holding power is the key, but at the price you are comfortable and don’t do micro management on the price. View it on a bird view scale and you will be fine along with your time horizons.
avatarAlubin
07-25
Tbh, I feel that timing the bottom is very very difficult. Only way is to set a target price based on your valuation and just go along with it.
avatarECLC
07-25
Never know where is the bottom or top in trading. Just keep going with some funds for buy lower & sell higher or vice versa cautiously.