The market has been volatile recently. In fact, this situation is not the first time it has appeared, but every time there is such a market, someone will constantly panic, every day to see their fund fall in price, do not know how to choose, so when the market is not good, how should the fund in hand operate, and how should we treat investment with a correct mentality?
1. First, let's first look at the market objectively this time. Why did these large-cap stocks suddenly fall so much? Is it because their company is suddenly bad? Has profitability suddenly deteriorated? Of course not. Their company has not changed at all, it is still a very high-quality company, and the reason why it fell is only because the previous short-term increase is too strong, so the price has retraced.The market, like life, cannot always rise, nor can it fall forever, always accompanied by ups and downs. Therefore, this decline is the opposite of the extreme.
2. There are many people who are concerned about the decline of the stock market, do they need to sell their stocks? In fact, before making any investment, you must first consider why you want to invest the way you want. Then think clearly if a loss occurs, what to do, when buying, in fact, you should think about what your stop loss line is, what is your take profit point?
Investment is not speculation, it requires clear thinking and planning, not waiting for things to happen. Risk always comes with opportunity. When many people are afraid and quickly retreat away from the scene, some people do not move, and even some people continue to buy the number of shares, as long as the money you use to invest is idle money, it will not be used in the short term, even if this money is gone, it will not affect your normal life, then there is nothing to panic about.
3. What should we do every time we encounter such a volatile market? Because such volatile markets happen every once in a while. But when the stock market is volatile, the most important thing we need to do is to keep our mind.
In fact, the decline of stocks is not terrible, it is the way the market defuses risk and creates opportunities, depending on how you treat it. The more moments like this, the more I think we should work hard and live well. Improve your work and main business. Your job, main business income will always be your main source of income, will manage money and investments, just part of your investment outside of work. Instead of being greatly affected by the ups and downs of the market, and eventually affecting their work and normal life, it is really worth the loss and putting the cart before the horse.
What we should learn is to better understand ourselves and the world in the process of investing. Therefore, when the stock market is volatile, we must ensure that we have a clear mind and calmly face the stock market shock, so that we can safely survive the crisis.
