The market is bleeding and it’s not only happening in the Philippines but in the whole world! I bet you have seen the charts for the past days where all you can see is red. This is an indication that stocks are falling. But remember that this is not always the case. The market is not down forever. It can go up anytime and stocks can bounce back again. I have seen this multiple times during my trading years. So, if you’re a stock investor and you’re scared that you might lose all your money because of the red indicators, let me share with you some tips on what to do when the market is not doing pretty well.
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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 trainings below.
The first thing you need to do is to pause. Just because the market is down doesn’t mean you have to do something impulsive to avoid the negative effects of the red indicators. Pause, then pause again. Review your plan and don’t do anything until you’ve formalized your game plan both using fundamentals and technicals.
If you are a trader, I advise that you should follow your take profit/loss points. This will allow you to maximize your gains and minimize your losses. Some investors tend to forget about this when they see the bleeding market. If you want to level up your trading experience, never forget about your plan and your strategies. These will save you at times like this.
If your goal is to accumulate stocks via peso cost averaging, continue what you are doing and don’t mind the volatility. The fundamentals of the stock do not change just because there is a sell-down in just a few days. Great companies always bounce back higher than how deep it has fallen. If you are confident that the companies where you invest in are great, keep your stocks and watch out for it until it’s time for you to sell it.
If you are a buy and hold investor, stick to your plan. Look for bargains if the market continues to drop. The cheaper they become the better it will be for you. It’s important that you remember your solid foundation when the market is down. Don’t change the process of your game just because you see the market sliding down. There are more coming and you have to take that into consideration.
Disregard your emotions. Your emotions will make you panic and will force you to either buy or sell rashly, which you may regret in the future. Avoid impulsive decisions that will only make you lose more money. Set aside your personal feeling and rely on fundamentals and technicals during moments like this.