Stock Market Down? One Thing Never to Do
When the stock market goes down and the value of your portfolio decreases significantly, it’s tempting to ask yourself whether it’s time to bail out of the stock market. That’s understandable, but most likely not the best decision. Instead, you should perhaps be asking, “What should I not do?”
The answer is simple: Don’t panic.
The second question might be, “Should I buy more?” The answer is maybe.
Key Takeaways
- Panic selling can hurt you in the long run.
- Judging your risk tolerance before you buy will help you choose investments that won’t disappoint you in the long run.
- Diversifying your choices among a variety of asset classes can mitigate risk during market crashes.
- Experimenting with stock simulators before…
