The Importance of Staying Strong During a Market Sell-Off
Sell-offs happen in the stock market. Don’t get scared and sell everything.
It is important to remember when entering the stock market that there will be downturns. Everything is fun when stocks move higher and your money grows. It’s not fun to lose money, whether it’s tens of dollars, hundreds of dollars, or thousands of dollars.
For money to go up, it has to come down, too. Just like everything in life, there is a balance to the stock market. Things going incredibly well at one point guarantees it going incredibly bad at others. Great gains guarantee great losses.
If you enter the stock market with a long-term mindset, this will not be a problem for you. You are building a portfolio you love that will slowly grow until you retire, making alterations along the way. You aren’t looking for pump-and-dump trades that you can make a quick buck off of this week before turning to the next thing.
Don’t get me wrong: there is a place for that in the market. Day- and swing-trading is a profitable venture and helps keep the market moving. Unless you really understand how things work, though, these quick trades could lead you down a bad path and plenty of losses.
