Taming The Bear ๐Ÿป : Managing Market Declines ๐Ÿ“›

Markets have been a bit volatile over the past few weeks, and the future is uncertain.
For many investors, these moves can be troubling because itโ€™s been many years since weโ€™ve had a substantial declineโ€“whether we do or do not from the current point (and, for the record, I think itโ€™s much more like the market surprises us with new highs sooner than anyone would think possible),
we need to spend some time thinking about how to manage our portfolios and manage ourselves in a market decline.

First, watch YOUR LANGUAGE

โ€ขLabels are meaningless: Correction, pullback, โ€”just words

โ€ขListen to the terms people use: fake, rigged, propped up, short covering rally. The words we use matter because they carry emotional meaning.


UNDERSTAND MARKET PSYCHOLOGY

โ€ขMarket moves are mostly emotional.
If you donโ€™t understand that, youโ€™re doomed to be at the mercy of the market.

โ€ขThe news doesnโ€™t matter (for prediction.) You need a plan for how you read the news!

โ€ขMarket movements arise from competitive action of traders driven by both reason and emotion. This is why the market creates such emotional reactions in traders and investors.

โ€ขThe โ€œpermabearsโ€ are interesting (and dangerous).

โ€ขLearn to monitor and understand your own emotions and reactions.


UNDERSTAND THE REALITY OF THE MARKET

โ€ขMarkets are mostly unpredictable. No one knows what is going to happen in the future with any degree of reliability.

โ€ขBest guide is statistics, but need to understand what this means:
~On average, stocks go up over long time periods.
~Hard to short stocks.
~Strange things happen on shorter time spans.
~What is predictable in the future is fuzzy and uncertain, and deviations can be large.


โ€ขMost of the things people talk about follow the market, so they canโ€™t be used to predict the market!
~The market is the leading indicator.
(Dow)


WHAT TO DO?

โ€ขThe biggest mistake investors make is selling into declines.
~How to avoid? Donโ€™t do it.
~Best plans are fading (going against) moves in stocks. If you implement this one rule, youโ€™ll be ahead of the game.

โ€ขAlways use limit orders. Always. Always.

โ€ขBuy at steep discounts, planning to hold for multiple years.
~Be a predator
~Buy โ€œstupidโ€ prices for things you are reasonably sure arenโ€™t going out of business/away

โ€ขBe your own manager.
~Break destructive patterns
~Stop mistakes before you make them


CONSIDER SHORTING
Shorting is not evil or (that) complicated, but this is a topic for another day.


Listen To 'After Dark - MrKitty' Such A Nice Music in Time like this.....(this music is overrated lol)

and Wishyou Profita- Strong In This Weeks.!!

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