If you monitor the stock market, you would have noticed that it had a huge fall a week before the Labor Day celebration. This was precisely on September 3 of over 800 points lost in a day. Dow Jones Industrial Average (DJINDICES: ^DJI) went down, and Nasdaq Composite lost about 5% or 600 points. With all this activity, what should you do?
Hello, and welcome to the website that offers you all about financial and money management, Lifestyle, minimalism, financial freedom, and stock investment. I am your host as always, and today my topic is the stock market is very volatile now. What should you be doing?
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The good thing about the app is once you join, you get one free stock recommendation. I also have lots of books and courses which can be very useful to you as a new investor, and you can check them all out. I placed the links below for you. I will personally recommend this book ‘How to Make Money in Stocks‘ for all who hope to invest in the future but find it hard to get the money saved up. The investment book should help you manage your spending and living habits for the sake of saving.
Remember always that this blog is opinion based and you can decide not to listen to the advice. If you take my suggestions, then be sure to do your research before making any decision. Also, all figures and numbers noted down on this post are accurate for October 1, 2020. Let’s begin the topic.
What is happening in the stock market, and its effect on investors?
Many investors are often worried, and it usually happens when stocks become very volatile. This isn’t so much of a shock, yet there is a lot to be worried about. An analyst has said that the rise in stocks during the pandemic period caused by the bearish government and investors has come to an end. All stocks have seen tough times in this period, including those big tech stocks everyone loved and praised.
People are concerned about their portfolios, and they were trying to find out what to do with it with the situation on the ground. On the other hand, some believe it’s all good, and there is no need to panic. This is true, the stock market has seen ups and downs, so there is no need to worry.
Why is it difficult to master investment?
I am a goal-getter, and that has been what I have been doing and maybe what many others are doing, getting goals. For goal-getters, they are either genetically good at things or work their hearts off and are brutal to get what they desire. Their belief is that every problem has a solution, and every problem must be solved. However, this is not the case in investment; not everything needs to be solved by spending hours.
The investor kings all make investments with very little time spent on it. Yet they are careful to buy and to sell and are almost always long term investors who believe in the power of time.
The something behind nothing.
Now, this doesn’t mean you should do nothing and blindly invest. What it means is that you take the time necessary to research a company and its background. You look at their leadership, goals, reports, financials, and market acceptance and growth. This is what an analyst does, and this is why they know a good investment and grab at it.
You need to take the time needed to know about a company and not just look at how high or low the stock value is over the last few years. Although the process of studying stocks and companies is not fun, it is, however, useful to ensure you invest wisely. You get your reward when you can trust in stock even at the hardest time because you know how solidly they stand.
Why There’s No Substitute for Putting In the Work?
Take a look at your stock and ask yourself if you trust in it and its ability to survive tough times. You probably can’t be sure of that, why because you didn’t take the time to learn about it. Blind investing turns you into a short term investor. No matter how badly a stock crash is, it is almost impossible for a company’s fundamentals business prospects to change in just a couple of days. But you won’t know that if you invested blindly. However, if you are certain of your portfolio, you won’t flinch even when tough times come.
Do the Right Something
Suppose you are so worried about the stock market and how unstable it is now. Or if you are concerned about where your stocks will be at the end of it all, go read up. Rather than sell your stocks, learn about them. Find out their weak points, understand what makes them great, and make them not so great. There is lots of free information on the web to make use of it. Then you can decide which stocks are worth selling off and which stocks you need to take advantage of its drop to increase your position.
Dabbling into the stock market without being equipped with the required information is the worst thing you can do. Tell me your opinion through your comments. Remember to subscribe to my blogs to be updated with other posts. Don’t forget, to like, and share is an encouragement for more wonderful posts.
Recommended for further reading:
- Unshakeable: Your Guide to Financial Freedom
- Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money
- Money: The Top 100 Best Ways To Make And Manage Money – Ace McCloud
- Business Secrets from the Bible – Daniel Lapin
- MONEY Master the Game – Tony Robbins
If you are looking to open an investment account follow these links below: