The market has two sides: the green and the red. In the stock market, green means bullish. This is where stocks continue to go up. If you have stocks and the market is bullish, you will see green figures in your portfolio, which signifies that you are gaining. Green also means profits in the stock market. Overall, the color green is a good indication that the price of your stocks is going up as planned.
Red means blood in the stock market. When you see green numbers in your portfolio, it means that the price of the stocks you bought is going down. Red also means losses. The value of your investments is lower than what you actually put in. Red means bearish, which is the opposite of bullish. To remind you, a bearish market is not always bad. You can actually learn more from it than in a bullish market.
Let me share with you some essential learnings from a bearish market.
At this point, you might be wondering why there is such a bearish market. The best way to explain it is by using the saying “what goes up must go down.” The market is not always green and profitable. There will be days that the market is red and that’s pretty normal. A red market is not bad. This is not an indication that your decisions for buying stocks are bad. Remember that the partner of the color green is red. When there’s green, there’s red. So, what goes up will eventually go down and it’s fine.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
A red market is not a bad thing. A red market means another opportunity to buy stocks at a discounted price. Since prices are moving down, it means that you can purchase stocks lower than what you actually bought. A bearish market is discounted. Take this opportunity to go on shopping. Shop the best companies. Invest wisely. Diversify. Don’t take this time for granted. Use a bearish market as an opportunity to get more shares.
A bearish market can tempt you to sell your stocks at a loss. This is what newbies do. You don’t have to be like them when the market turns red. What you can do to learn to control your emotions is to avoid looking at your portfolio when the market is red. Close your broker app. Watch a movie, read a book, go to Youtube and watch informational videos. Remember to control your emotions no matter what.
When investing or trading in the stock market, you need patience, patience, and more patience. In a bearish market, you will know how to wait for the market to bounce back. You will learn to be patient while controlling your emotions. A bearish market is a good place to learn about patience and controlling your emotions. It’s an opportunity to buy more shares. Use this as an opportunity to accumulate your investments rather than withdrawing them.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.