Good ways to endure a market downturn?

Tiger_comments
07-20

This week, the market has been volatile and has started to pull back. Interest rate cuts, elections, and earnings reports have changed the market direction.

$S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ have dropped %1.97 and 3.65%, respectively. The semiconductor sector, which benefited the most from the previous rally, has suffered significant losses in this week's trading.

What do you think is the best way to endure a market downturn?

  1. Check the community to see how much other tigers have lost. If you see that others have also lost a lot, or even more than you, it might provide some psychological comfort.

  2. Turn off the display of gains and losses in your holdings to avoid the stress of seeing them.

  3. Tiger @nerdbull1669 previously shared the benefits of meditation for trading: How Meditation Can Help Change Our Trading Psychology

  4. Cut your losses promptly and change your trading strategy.

Do you have good ways to endure a sudden pullback?

Share with me and other tigers to win tiger coins~

# Good Ways to Endure a Market Downturn?

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.

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  • Success88
    ·07-20
    The best way for market down turn is to continue invest in good company especially AI chips supply $Taiwan Semiconductor Manufacturing(TSM)$ and $NVIDIA Corp(NVDA)$ in long term it will still go up @Tiger_comments @HelenJanet @MHh @SR050321 @koolgal
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  • BenjiFuji
    ·07-20
    My way of enduring the market down turn is NOT to endure it, but to rather CELEBRATE. The good growth stocks will get on a discount and cheap will get cheaper. When it’s very cheap, with excellent quality and value, it’s time to buy buy and buy! [Cool]
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  • Universe宇宙
    ·07-20
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    This pullback may be expected as the months where crashes and corrections that often happens is coming near, buddy @TigerGPT , how do stock market perform in the month of August, September and October in the past 30 years, and are we expecting correction that is -20% to -50% in these 3 months?
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    • TigerGPT: 

      Based on the historical data from the past 30 years, let's analyze the performance of the stock market in the months of August, September, and October:

      August: The S&P 500 has shown mixed performance in August over the past 30 years. There have been instances of both positive and negative returns during this month. However, it is worth noting that August 2024 has just begun, and it is too early to predict the performance for this specific year.

        

      September: September has historically been a challenging month for the stock market. It has witnessed some significant market downturns and corrections. However, it is important to note that not every September has resulted in a market decline. Market performance during this month can be influenced by various factors, including economic indicators, geopolitical events, and investor sentiment.

        

      October: October has a mixed historical performance. It is known for some major market crashes, such as the 1987 Black Monday crash. However, there have also been instances of positive returns during this month. Similar to September, the performance of the stock market in October can be influenced by various factors.

        

      Regarding the expectation of a correction of -20% to -50% in these three months, it is important to note that predicting market corrections with such specific percentages is challenging. Market corrections can occur, but the magnitude and timing are difficult to forecast accurately. It is crucial to consider a range of factors, including economic indicators, corporate earnings, and market sentiment, when assessing the potential for a market correction.

      To endure a market downturn, here are some good practices:

      Diversify your portfolio: Allocate your investments across different asset classes, sectors, and regions to reduce risk.

        

      Maintain a long-term perspective: Remember that market downturns are part of the natural market cycle. Stay focused on your long-term investment goals and avoid making impulsive decisions based on short-term market fluctuations.

        

      Regularly review and rebalance your portfolio: Periodically assess your portfolio's performance and make adjustments as needed to ensure it aligns with your investment objectives and risk tolerance.

        

      Have a cash reserve: Maintain an emergency fund or cash reserve to cover unexpected expenses or take advantage of investment opportunities during market downturns.

        

      Stay informed: Stay updated on market trends, economic indicators, and company news. This can help you make informed investment decisions and navigate market volatility.

        

      Remember, investing in the stock market involves risks, and past performance is not indicative of future results. It is always recommended to consult with a financial advisor or professional before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice.

      07-20
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  • RavenX
    ·07-20
    I am sad but we will tank over this
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  • 爱上投资学
    ·07-20
    删除app不看，过一段时间再回看
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  • Zack44
    ·07-20
    Best way to ensure sudden pullback and losses are to invest further for averaging the investment
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  • highhand
    ·07-20
    if you need comforting, then you better read the fine print in investing. pullbacks are bound to happen. either ignore or buy your favourite stocks at support levels. these are the only 2 options. if you sell, then you bought the wrong stocks at the start.
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  • hd87
    ·07-21
    I will have a mentality that my current portfolio might go down. 50% at any point of time while having the ability to endure it for 3-5 years of holding the quality stocks with strong fundamental
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  • MasterStonker
    ·07-21
    Go fishing or bird watching.  Take a break away from the madness 😅
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  • Mrzorro
    ·07-21
    Stock trading is just the same as our life, and it is always up and down. No matter what happens, just keep calm and be positive! Acknowledge the difficulties, but remember that they will pass. 📈
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  • Samlunch
    ·07-21
    A lot of people chase the fastest route to make 100%, willing to take on enormous risk for this target


    Far too many disregard 30–40% gains with relatively lower risks


    Take the lower risk option each time
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  • Jayden Chong
    ·07-21
    A good speech would be good after it
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  • LiverpoolRed
    ·07-21
    I will choose good company share to sell put option. This is the best time to buy share that you like to invest and earn premium.
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  • Rep
    ·07-21
    Hold and keep faith
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  • ECLC
    ·07-21
    Earlier on sold off some stocks as the prices keep going up; waiting for pullbacks to buy back. Gains & losses are part of trading. Pullbacks are opportunities to buy but funds limited.
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  • ZhukovHatesPepsi
    ·07-21
    Hedging with money market fund. Making bets for and against the market. Tech and information sectors have been booming unchecked thanks the AI rally so perhaps if there is a shift it will be a shift against it so perhaps SQQQ or some tech short might make sense.

    however if you want to bet bullish there is one sector that has been unaffected by the rally and that's REITs if we believe the ratevcuts are inevitable, the depressed reit sector will make a comeback

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  • GXZ
    ·07-21
    hold on
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  • ShanGe
    ·07-21
    hold
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  • 1PC
    ·07-21
    Pullback is a Great time to scoop Value Stocks, and I am especially excited when there's spare cash available to Scoop and only Drool 🤤 with excitement when ZERO cash available [Facepalm].  With both SP500 & NASDAQ Pulling Back, I am rubbing my hands ✋✋ to TP and Re-balance [Happy] 😁
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  • MHh
    ·07-21
    Take profit for those that are in green and use it to buy the stocks that I’ve been waiting for the right price to buy. For stocks in the red, probably will hold on if it still fits my investment horizon and the fundamentals have not changed and I’m not expecting macroeconomic factors to cause further downward fall in the price. Regardless , it is important to keep sufficient cash to buy stocks on watchlist or to average down.
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