Markets are going to go up and down. It is a fact. There is no way for you to protect yourself from appearance of the volatility. But in the end trading and investing in the market securities comes down to several rules that you need to follow to conquer the markets. DOs and DON’Ts, if you will.
1. DON’T let your emotions run lose.
2. DO save up for emergencies.
3. DON’T hold a portfolio that is too risky.
4. DO know how much you are worth.
5. DON’T do what everyone else does.
6. DO get professional help.
7. DON’T step away from what you believe in.
8. DO make your portfolio diverse.
1. DON’T let your emotions run lose.
Never let your emotions take over you. Never let yourself panic and never let your emotions be the master of you. Corrections of the price are going to happen. Volatility is going to come. Assets are going to lose price sooner or later. Do not let your emotions decide what your actions are going to be.
2. DO save up for emergencies.
Have saving inside your savings. SAVINGCEPTION! Have a fund that is going to help you in the difficult times. Say the market dips and your investment doesn’t pay off. What are you going to do? Cry? Beg for help? Pray? None of that is going to help you. All of this is only going to take your time. Instead of that you could just dig into your emergency fund and reimburse that money from all of that winnings that you can make by thinking straight and clearly. After all you didn’t spend any time on panicking. You can get right back into it.
3. DON’T hold a portfolio that is too risky.
If you are shivering on the thought of volatility and if your portfolio is fully dependent on the calm market – congratulations! You have built a portfolio that is way too risky. There are ways to improve your portfolio so that volatility doesn’t give you sickness. And I highly suggest that you look into that.
4. DO know how much you are worth.
It is a good tone to know how much all of your portfolio costs when put together. If you do not know how much you actually own you allow market and all of the surrounding news take matters into their own hands. And that is not something you
can afford to do, is it?
5. DON’T do what everyone else does.
There is a theory that you need to sell on losses. But there are actual strategies that can say otherwise. I mean that you need to BUY on losses. Of course, while these strategies bare a lot of risks you need to understand that there is a lot of potential for gains here. Of course here you need to conduct analysis and look at the history of the asset and security. If the price falls from $150 to $120 there is no guarantee that the previous level is going to return. You need to carefully scan the surroundings of the security to truly understand its future behavior.
6. DO get professional help.
There are professional brokers who would probably be of use to you. They can check your trading portfolio every so often in order to tell you what is the best decision for you at the moment. There are also professional trading signals providers who are going to be glad to take part in you building your happy financial future.
7. DON’T step away from what you believe in.
Do not leave your cause and your plan. If it is good and sturdy enough it is going to live through every shake and every volatile period of the market. That is why you need to push for what you believe in. You need to believe your cause and your plan. You need to believe in yourself.
8. DO make your portfolio diverse.
Trade different. Look at different aspects of trading and different securities. One of them might just be there just for your needs.
