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s a stock trader and investor you must realize that big market sell offs are an anticipated and a healthy part of investing in the market. It make good stocks cheap. As a smart investor when you are concerned about market risk you can use tools, tricks and trading strategies to help protect and hedge your investment portfolio in uncertain and uneasy times.
You have to understand since the inception of the stock market it has been true that what goes up does come down, and what goes down usually comes back up, and way up! The market has always made higher highs - but has never gone to zero. Although the stock market has continued to hit new highs this year, it has often been subject to periods of declines and downturns. When the market is a steady green investor confidence is high, and when red then fear sets in, especially when changes happen fast. You will learn to become a better trader when you're trading with a long-term aspect on the market, only then will you will be on your way to real wealth creation. Especially, when your under valued stocks come off their lows to begin to trend higher. But, not if you sold your holdings and walked away.
Most online traders like to use short-term plays to profit, but you have to understand, as an investor, that these play will eventually work out, but they are subject to take a bit more damage during volatile times. Stocks will forever rise and fall, occasionally by substantial amounts. That is the game. When the market is increasing in prices over a lengthy period of time it's called a bull market. When it decreases substantially like 10 to 20 percent it is a called a correction, a bigger decline of more than 20%, is considered bear market territory. These 3 movements are all a part of the stock market stages and its life-cycle.
When trading the market, big ups and downs tended to balance each other out over time. As a general rule, up trends in the markets have always outweighed periods of declines. Because of this, stocks have had a stronger performance of any other investment class, even real estate, over the long haul. But, remember past performance does not guarantee you any future results.
If it were just as easy as simple math, it could be very easy for any investor to just sit and wait out the market sell off for its recovery. But it is not that easy. It is how investors react when the market declines, as it spooks investors, that is the key to stock trading success. Don't be that trader that when your stocks begin to free fall, you act irrationally and start making poor trades and bad decisions, negatively affecting your investment returns.
Knowledgeable investors who are a bit savvy enough tend to take the necessary steps and prepare their portfolios for occasional market declines. These investors are better composed when managing their emotions in times of stock prices decline. But, investing too conservatively may contribute to them not reaching their profit targets.
Just as we've seen in previous market sell offs, many individual traders continue to make bad trades, they keep selling good assets when the market declines, only out of fear, like the stock market will never, ever recover and come back. However, the opposite is always ringing true. Not only will the market come back, but it will probably happen a lot sooner than one might think. When the pundits are predicting there are further corrections ahead, the reality is NO ONE can predict the future of the market. But one can certainly use past experiences to help gain an understanding about current market conditions. So in this blog we are trying to explain how market corrections typically work, so you can get off the sidelines and invest in your future.
Recognize, investments of all types involve risk. Because the stock market was on a huge tear, investors now are sensitive to downward trends. So when this market recently corrected, the result was met with fear and uncertainty, and a lot of investors pulled their money out of the markets. But just how long should that last? How low can it go? Since the current correction is still in progress, we’ll look at past market data, which is the last market correction on record, 2016. While a good portfolio anticipates all possibilities from the outset, you can improve your stock trading at any time by subscribing to our service and by implements some of our stock trading methods. This isn't our first rodeo.
As a long-term investor, you shouldn't be focused on short-term volatility. You need to make the long journey a little more enjoyable by implementing a few simple steps during a market correction like this. You will face some risks as a holder of stocks and mutual funds during periods like this, and we have a few ideas about how to substantially reduce your chances that your portfolio suffers big long-term losses during times like these.
We are not there yet, but unfortunately bear markets do take a little longer to recover. But good news is they will and do eventually recover! But emotions, fear and human nature are tough things to overcome. So while ignoring market corrections and bear markets and staying the course is the right thing to do, it doesn’t necessarily feel that way when markets are uneasy and volatile. So our advice: do not go at it alone! Use a battle tested service like BullsToBears.com to guide your decisions, and remember that making better stock trades as well as going slow and steady when trading stocks will always win the race.
Bear in mind, if you a day trader, swing trader, short-term or long-term investor you can't help but benefit from subscribing to our FREE NEWSLETTER. Our trading methods and tips, are there for all traders and investors to explore. We also offer a 14 DAY FREE TRIAL so you can learn for yourself about market structure, trend identification, market volatility, volume, where and when to trade, and how we put it all together, so that you can have a winning edge.
Remember, the time is NOW to invest for your future success!
Till Next Time... Happy Trading!
s a stock trader and investor you must realize that big market sell offs are an anticipated and a healthy part of investing in the market. It make good stocks cheap. As a smart investor when you are concerned about market risk you can use tools, tricks and trading strategies to help protect and hedge your investment portfolio in uncertain and uneasy times.You have to understand since the inception of the stock market it has been true that what goes up does come down, and what goes down usually comes back up, and way up! The market has always made higher highs - but has never gone to zero. Although the stock market has continued to hit new highs this year, it has often been subject to periods of declines and downturns. When the market is a steady green investor confidence is high, and when red then fear sets in, especially when changes happen fast. You will learn to become a better trader when you're trading with a long-term aspect on the market, only then will you will be on your way to real wealth creation. Especially, when your under valued stocks come off their lows to begin to trend higher. But, not if you sold your holdings and walked away.
Most online traders like to use short-term plays to profit, but you have to understand, as an investor, that these play will eventually work out, but they are subject to take a bit more damage during volatile times. Stocks will forever rise and fall, occasionally by substantial amounts. That is the game. When the market is increasing in prices over a lengthy period of time it's called a bull market. When it decreases substantially like 10 to 20 percent it is a called a correction, a bigger decline of more than 20%, is considered bear market territory. These 3 movements are all a part of the stock market stages and its life-cycle.
When trading the market, big ups and downs tended to balance each other out over time. As a general rule, up trends in the markets have always outweighed periods of declines. Because of this, stocks have had a stronger performance of any other investment class, even real estate, over the long haul. But, remember past performance does not guarantee you any future results.
If it were just as easy as simple math, it could be very easy for any investor to just sit and wait out the market sell off for its recovery. But it is not that easy. It is how investors react when the market declines, as it spooks investors, that is the key to stock trading success. Don't be that trader that when your stocks begin to free fall, you act irrationally and start making poor trades and bad decisions, negatively affecting your investment returns.
Knowledgeable investors who are a bit savvy enough tend to take the necessary steps and prepare their portfolios for occasional market declines. These investors are better composed when managing their emotions in times of stock prices decline. But, investing too conservatively may contribute to them not reaching their profit targets.
Just as we've seen in previous market sell offs, many individual traders continue to make bad trades, they keep selling good assets when the market declines, only out of fear, like the stock market will never, ever recover and come back. However, the opposite is always ringing true. Not only will the market come back, but it will probably happen a lot sooner than one might think. When the pundits are predicting there are further corrections ahead, the reality is NO ONE can predict the future of the market. But one can certainly use past experiences to help gain an understanding about current market conditions. So in this blog we are trying to explain how market corrections typically work, so you can get off the sidelines and invest in your future.
Recognize, investments of all types involve risk. Because the stock market was on a huge tear, investors now are sensitive to downward trends. So when this market recently corrected, the result was met with fear and uncertainty, and a lot of investors pulled their money out of the markets. But just how long should that last? How low can it go? Since the current correction is still in progress, we’ll look at past market data, which is the last market correction on record, 2016. While a good portfolio anticipates all possibilities from the outset, you can improve your stock trading at any time by subscribing to our service and by implements some of our stock trading methods. This isn't our first rodeo.
As a long-term investor, you shouldn't be focused on short-term volatility. You need to make the long journey a little more enjoyable by implementing a few simple steps during a market correction like this. You will face some risks as a holder of stocks and mutual funds during periods like this, and we have a few ideas about how to substantially reduce your chances that your portfolio suffers big long-term losses during times like these.
We are not there yet, but unfortunately bear markets do take a little longer to recover. But good news is they will and do eventually recover! But emotions, fear and human nature are tough things to overcome. So while ignoring market corrections and bear markets and staying the course is the right thing to do, it doesn’t necessarily feel that way when markets are uneasy and volatile. So our advice: do not go at it alone! Use a battle tested service like BullsToBears.com to guide your decisions, and remember that making better stock trades as well as going slow and steady when trading stocks will always win the race.
Bear in mind, if you a day trader, swing trader, short-term or long-term investor you can't help but benefit from subscribing to our FREE NEWSLETTER. Our trading methods and tips, are there for all traders and investors to explore. We also offer a 14 DAY FREE TRIAL so you can learn for yourself about market structure, trend identification, market volatility, volume, where and when to trade, and how we put it all together, so that you can have a winning edge.
Remember, the time is NOW to invest for your future success!
Till Next Time... Happy Trading!
