Stock Market Crash?
(As Opportunity/A Panic)
A stock market is a place where you can buy shares at a certain price and it is the behavior of the market which provides upward (share prices are up, also called bull market) and downward trends (share prices are down also called bear market).
When a stock market crashes it simply means sharp and sudden stock prices are down or downtrend in the Market which creates a weak, fearful, panic situation and a great depression in the market sentiment. In this situation, what you (as an Investor ) should do? it's a very hard decision for every market participant what to do during and after the stock market crashes.
Here we will understand what is the meaning of a crash and what are the things investors should do when the stock market crashes.
Is the investor taking it as an opportunity🙋🙋🙋or take it as a panic?😨😨😨
It is up to you what to do when the stock market crashes. you react it is a unique opportunity to buy stocks cheaply which is fundamentally sound or creates a panic situation that is not good. The major problem with crashes is how long it takes stock to recover. You as an investor can do the following things during and after the market crashes.
During and after market crashes you do the following things:
- You Don't panic and avoid panic buying or panic selling.
- You are a long-term investor then buy good quality stocks after researching the fundamental of the company. Be ready to buy on the dip.
- Focus on the long term.
- Patience.
Good for information for new inverter
ReplyDelete