5 tips to investors in a volatile market

The US stock market has come out of one of its worst months since the financial crisis, and October has been in history. It is natural for people to wonder whether they have positioned themselves properly on the market and whether their investments will work. This is a typical reaction when prices fall sharply, and especially when it happens in one day, as we have seen in US indices.

It is also normal to see such a correction, given that the indexes reached new highs in September and was expected to be more or less expected. Investors, regardless of their risk tolerance, should concentrate on long-term goals. Here are five recommendations that can guide you to the right investment choice:

Making drastic changes to an investment portfolio, such as turning all your money into money, may be the safest solution, but such emotionally driven decisions are never a good idea. It is important to have a long-term investment plan to stick to even in the inevitable movements up or down. Otherwise you will lose control of your emotions, which will make you buy shares near their peak or sell them on their bottoms.

Бъдете готови да балансирате

Със скорошното възстановяване на акциите те са на нивата от преди края на миналата година. И все пак ако акциите продължат да поевтиняват значително ще трябва да започнете да продавате и вие. Така както е важно да балансирате портфолиото си при бичи пазар, така и е важно да имате план при обръщане на ситуацията да направите нужните промени при портфолиото за да е балансирано отново.

For the people who work, spend more money on savings. Whether the shares are up or down, it's always a good idea to maximize your savings program every year you work. What you save will help you a lot in hard times. 

The stock market will periodically experience shocks, but do not let the daily tops and bottoms turn your plans for long-term investment. Continue to make long-term investments that will begin to pay off in the distant horizon. Always remember that "your time on the market" rather than "hit the market" leads to success when it comes to investment.

Photo: Unsplash

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