This is something we all dread! This risk is probably one why we’re all so apprehensive about investing our money in the share markets. But the rule of investment, on which the market thrives is – Higher the risk, higher the returns. So you cannot really play safe when it comes to the stock market – instead, you can be better prepared to handle the crash in the share market. Read on for how to do it.
The first reaction, which is entirely justified is to panic. But in no way does panicking help. Under panic mode, many investors lose their cool and end up making decisions and steps which they would only regret later. So the first and foremost thing you can (and should) do is to keep your cool.
Don’t sell off your shares indiscriminately:
Fluctuations are the rule of the market – if it crashes one day, it will rebound and achieve stability in some time. You have to wait for this to happen – give the market some time to recover and then decide whether you actually want to keep the shares you own or sell them off. Selling off the shares right away, the moment you get to know that the market has crashed won’t make any sense at all. So wait, watch, and then make your move. You can even consider the opinion of someone who knows the in and out of the market to validate your decision and then act.
Don’t wait for the crash to happen:
Some stocks aren’t really worth the wait. So don’t wait until the market crashes. Timely actions will work best for you – if you don’t really like to take unnecessary risks. Watch the market and buy and sell stocks according to the market conditions. Leave the stocks which show results over a long time – while you may keep toggling with the other stocks once a while as per the conditions of the market. This will keep you in a better position to face a crash in the market.
All the stocks will be at an all time-cheap price – so jump in and buy the ones you feel will pick up soon after the stock market aftermath! You need not hesitate even a bit to invest at this stage because the all the stock prices will have already hit rock-bottom and you can easily buy them to make a profit in no time – when the market stabilizes after a while.