Today could be a bumpy ride for quite a few people.
If you’re a mid to long term investor, and your portfolio contains strong stocks that you believe in. Then…
1, Don’t panic and fall into the hysteria others and markets love to create.
2, Don’t keep watching your charting software.
…..If you have stop losses and they kick in, then that is fine, they are doing their job.
3, If you haven’t set up stop losses and have strong trending stocks, then just walk away and let the markets do their thing.
Should you sell out your stocks and buy back in, later down the line? You could do that also, it is up to you and your trading strategy.
You could also let this correction do its thing and then buy more at the lower price, though ONLY when the markets are on their way back up.
4, DON’T try to time the market, whether selling or buying. Anyone here that has been trading for a while will tell you that this isn’t a good strategy at all and hardly ever works… more likely to get yourself burnt.
5, Patience, calmness and time are what now come into play…. (this one is one of the hardest for a lot of traders)
Remember, all investors have many tools within their armoury and at some point, they will all come into play. These range from…
When to buy in
When to Compound on a stock
Where to set their calculated stop loss
…. and also in this current case.
When to sit back
Correct mental state when markets are correcting… (basically, calmness of mind)
IT’S ALL PART AND PARCEL OF WHAT WE DO, so use this time positively.
Brush up on your skill set.
Analyse other positively trending stocks that could be added to your portfolio in the future… (taking into account the last few days of course)
Understand calculated stop losses (if you don’t already know)
Maybe even have a look at Trend Trading and try to gain an understanding into that… (and why I keep harping on about it like a stuck record)
Basically, don’t let the current markets negatively impact you and turn this into a positive (no matter how big or small that positive may be).