Markets have been down for the last few weeks, your favorite stock, Apple or Telsa, has been down 20% and you are starting to have cold sweats and sleepless nights like it’s the end of the world.
Is it time to panic, call it quit and sell all your shares? or are there any other solutions?
Seriously, it’s not the end of the world. You do not need to sell all your shares in a panic.
Here are things you can do to save the day:
👉 Buy
Instead of selling, like everyone else, maybe turn this around, and take this as a buying opportunity.
Great investors love to buy when there is blood in the street and everyone is selling, this is where you get bargains and double your money quickly when markets recover.
Think of this as your garage fire sale for stocks.
You don’t want to miss it. So grab them while you can, and average down your historical purchase price.
👉 Wait
You could wait for the storm to pass, but this can be nerve-racking, above all when you don’t know why your stocks are down or why the markets are in a panic.
Sometimes the best move is not to move.
Or do anything stupid.
Selling at a big loss in a market wide panic is the worst choice you could make.
👉 But…
The only exception is when stocks are caught in an accounting scandal like Enron or WorldCom, or the company finds itself in a full financial fraud.
Then it’s Game Over for those stocks and you need to get out like it was yesterday.