What should retail investors do during a declining market? - Digital Cryptocurrency Platform Trading

Do not blindly sell in a panic

Blindly cutting losses at any cost during a stock market crash is unwise.

Stop-loss should be applied to stocks that are currently shallow in loss and have limited rebound potential in the future.

For stocks that have fallen too sharply at present,

it’s better to wait for a rebound to appear before choosing to sell.

Do not rush to recover losses

In a market crash, investors are often severely trapped,

with huge unrealized losses.

Some investors are eager to recover losses,

arbitrarily increasing trading frequency or investing more funds.

This approach is not only futile,

but also worsens the extent of losses.

In a weak market trend,

investors should trade less or avoid trading stocks altogether,

calmly wait for the market to turn around,

and only re-enter when the trend becomes clear and reliable.

Do not be overly anxious

In a market crash,

some new investors tend to give up on themselves,

or even operate in a reckless, destructive manner.

However,

remember that no matter how angry people are,

they can calm down after a while.

If,

huge losses occur in funds,

it will be very difficult to recover.

Therefore,

regardless of the situation,

investors should not vent their emotions through their trading accounts.

Do not panic excessively

Panic is the most common emotion among investors during a market crash.

In the stock market,

there are rises and falls,

slowness and speed,

which is a natural law.

As long as the stock market exists,

it will not fall forever,

and ultimately, there will be periods of growth.

Investors should take advantage of market downturns,

study and research carefully,

actively select stocks,

and prepare early for the upcoming bull market,

to avoid repeating the old mistake of chasing gains and selling in a panic when the market turns favorable.

Do not regret too much

Regret often traps investors in a vicious cycle of repeated mistakes.

Therefore, investors should quickly free themselves from the shackles of regret,

so they can learn lessons from failures,

improve their trading skills,

and strive to make fewer mistakes or avoid mistakes altogether in future operations.

Do not rush to catch the rebound

Especially in a declining trend that is not yet over,

trying to catch the rebound is like “picking chestnuts from the fire,”

a slight misstep could lead to disaster.

In the current market environment,

there is no possibility of missing out,

investors must not risk deep losses just for a small rebound profit.

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