Be ready for the next market fall

Be ready for the next market fall
All of us have the fear to loose money. And, when the market crash happens, most of us keep it to ourselves. However, its not the best approach as we just sit and loose the potential profit we would have, if we were a little bit braver. So, lets learn what every trader should do, when the market falls again.

Keep calm

Yes, its hard to leave emotions aside, but its so important not to panic in times of market crashes. For example, in 150 years the SP 500 fell by 30% or more 15 times, or about once a decade on average. And what does always happen next? It recovers again and again. Sometimes it takes months, less often years. Its not a good idea to park your money in the stock market in these moments, but if you already have them, it will be better to hung on as stocks will rebound anyway. While many investors panic and sell all their stocks settling for low prices and possibly even significant losses.

Make a wish list

The most famous investor Warren Buffet said: We [he and partner Charlie Munger] simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. Make now a wish list of stocks youve always wanted. So, the next time, when the market crash happens, youll enjoy buying all of them at very low prices. And then the market bounces back, prices will surge and youll gain.

Make an emergency fund

This extra money will give you an opportunity to buy assets at good prices from your above wish list. Moreover, you wont depend from any unforeseen factors.

Diversify your portfolio

Dont focus only on one currency, stock or any asset. Rebalance your portfolio and youll reduce your risks significantly. Finally, be ready to react, monitor the market, remember that even the bearish stock market is an opportunity!

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