Stressful Times

We are living in stressful times. However, In times of greatest economic stress, the worst thing you can do as a trader or investor is to panic. Reactions to situations that are born of fear are rarely wise or helpful. Perhaps you didn't sell before everyone else began to, and the market is in a slump. Now you’re facing a huge loss, all in one day. Your first thought may be to call your broker and sell as quickly as you can. This is a classic panic reaction. You cannot allow yourself to give into a panic attack; don't rush to sell the next day. The time to sell is before a melt-down, not after. Instead, take a deep breath, and study your portfolio. If you didn't own these stocks now, would you buy them after the market crash? Chances are that you would; they'd be even cheaper. Selling them wouldn't be a correction, but a reaction.