Stock market is a dangerous place. Many people did lose their fortunes in the blink of an eye. When the market is bullish, everyone knows how to make money. The most important time to understand if you are a good trader or not is what you do when the market is down.
Turn your risky positions into money
When experienced investors feel the dangerous times are coming, they sell their risky or short-term investments. However, they don’t rush to sell everything. Because the market will recover, it always did. Selling all of your investments might make you miss out on the big gains after the recovery.
Buy when it’s all red
One of the most popular investors of our time, Warren Buffet says
Be fearful when others are greedy and greedy when others are fearful.
You have to know that if regular investors are bragging about profits, making a lot of money, a fall in market prices is coming soon. So if people are making real gains in the market, you should liquidate your money as soon as possible to save yourself from upcoming bearish market.
And when people start to lose their money and start to think about it’s going to deep and sell their investments, you should be the one who is buying. Because a bearish market is always followed by bulls.
Don’t listen to others
Never follow people who has no experience about investments. Because making good moves in the market requires years of experience, loss and gains. If you follow others, you will be losing your money like the majority. So build you own investor blueprint, watch the market closely and learn from your mistakes.