Two years ago, in response to readers of this blog, I wrote a post of “How to deal with market crash or sharp pullback?“, which may be used as a reference for investors at this time.
What to do?
Do nothing
If you feel helpless when the stock market crashes, you don’t know what to do. The simplest thing is “do nothing”.
Go to bed early
Turn off your computer, cell phone, or television; go to bed immediately. The stock market will not stop rising or falling because you are worried about your holdings, or because you care.
Go out for exercise
Once the stock market crashes, believe me, there is not much difference between the opening index and the closing index, so there is no need to waste time watching the market. At this time you should go out to exercise or take a walk, which will be beneficial to your health. Staring at a falling index will only make your heart beat faster and make you anxious, which is harmful to your health.
Get in and get bargains
If you are an active investor, there are cheap stocks everywhere at this time. Stocks that you normally cannot buy are now beckoning to you. If you have done your homework and you think the price is reasonable, you should buy on dips.
What not to do?
Sell stocks
When the stock market crashes, the biggest mistake is to sell stocks, especially if you think you are smart and dump all your holdings – people who do this will almost certainly regret it later.
Listen to experts
Whether they are financial experts, celebrities, Internet celebrities, hosts, or even relatives and friends; they know and don’t know more or less about the crash than you do. At this time, watching financial channels and online live broadcasts is just to warm each other or comfort yourself, and to increase your fear.
Conclusion
Most people vow to invest for the long term during the bull market. Being able to persist indifferently during the crash is the first step to long-term investment. Selling stocks during a crash just proves that you can’t invest for the long term.
When the stock market crashes, what you should do is buy, not sell! Just like the title of my other post “Investors should be happy when market crash” This is the first step for a successful investor or an investor who wants to make a lot of money. If you can’t do it, you should quit the stock market to stay safe.
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- “Todolist when the stock market crashes“
- “How to deal with market crash or sharp pullback?“
- “Investors should be happy when market crash“
- “Does the stock market fall deep enough?“
- “Market volatility is investors’ friend“
- “2020 market crash, why more retail investors than Wall Street made money?“
- “The uncertainty in Investing“
- “Retail investors’ wrong investment concept not worth trying at all“
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