They are called selloffs because investors react to these big declines by panicking, liquidating and selling off stock positions. We see this happening over and over again despite investors having held top quality companies with good fundamentals within their group of holdings.
Professional seasoned investors will tend to do the very opposite. Through experience they have learned to see a big correction or huge downturn as a chance to review their risks within their portfolio and take that opportunity to add to good positions creating a cheaper entry price rather then selling into that weakness.
When confronted with adverse market conditions like big sell offs, whether or not it's a one-day decline or longer, an investor must take the time to review their portfolio and access the collateral damage occurring. Having to deal with your portfolio during market volatility may be burdensome, but an important necessary task. We comprised the paragraphs below into a few suggestions that will help you and your trading account survive big market declines like the one we just witnessed that wiped away 2000 points on the Dow, all of 2018 gains, in about 20 trading sessions.
Have long-term goals etched in the back of your mind. The one thing for certain we can GUARANTEE our followers is that regardless of what your stock holdings consist of, the stock market will forever experience volatile moves ups and volatile moves down. That is the main reason why it is important to keep emotions in check and stay focused on your long term trading goals. Having a buy and hold strategy and holding that course steady - despite short term choppy market moves, will most likely determine the difference between profits and losses. While the very opposite of this strategy is to Day Trade stocks and try and figure out what the market will do today with in the next few hours. Bulls To Bears as well as most investment professionals will tell you it is very risky trading, not to mention if your predictions are wrong, it could cost you a lot of your money and you can miss out on a particular company's best days that are ahead.
We agree with Warren Buffett's overall investment strategy when he says: "Be fearful when others are greedy and greedy when others are fearful."
By and large, stop getting bent out of shape by stock market sell offs. Instead put together a diversified stock portfolio of quality stocks and options. Try and avoid purchasing to many speculative stocks, or investments with an uncertain future and low volumes. When you do that you will be less likely to panic during market routs with better stock portfolio holdings. Because of our 16 year track record, we are confident our members will survive, no matter what the economy or market throws at them. By continuing to place better trades - when sell offs occurred our existing clients thrived in good times and survived in bad.
Utilize our 14 Day Free Trial Offer. Our FREE trial is a way to get your foot in the door and see first hand how our investors benefit from our buy and sell alerts. Just so you know - if you choose to take advantage of the trial - you do not need a credit card to enroll - Just fill in the information and you all set.
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Till Next Time.... Happy Trading!!!