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 Dow Jones

 32859.03

+141.43  (+0.43%)

  
 
  

 S&P 500

 4050.83

+23.02  (+0.57%)

  
 
  

 Nasdaq

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+87.23  (+0.73%)

  
 
  

 Russell 2000

 1768.39

-3.21  (-0.18%)

  
 
  

 VIX

 19.06

-0.06  (-0.31%)

 

 Dow Jones

 32859.03

+141.43  (+0.43%)

  
 
  

 S&P 500

 4050.83

+23.02  (+0.57%)

  
 
  

 Nasdaq

 12013.47

+87.23  (+0.73%)

  
 
  

 Russell 2000

 1768.39

-3.21  (-0.18%)

  
 
  

 VIX

 19.06

-0.06  (-0.31%)

 
 
 
Trading Strategies
»
FAQ
 

Investors Mistakes When Market is Down

 
 
 
 

The high volatility recorded in the financial markets since the beginning of the year and the continuous decline in the stock, bond and foreign exchange markets marks the end of the era of expansionary monetary policy

 

Here are the 5 common mistakes that investors make and should be avoided:

 

1. Invest the entire investment amount at the very beginning

 

It is worth investing in portions, thus reducing the risk and allowing yourself to purchase goods on days of sharp declines. The desire to make a profit drives investors to buy stocks just because they go up every day, even for no reason. A stock that has a buzz around it and is grabbing the headlines - this is exactly the moment to sell. Remember - once the correction in the stock starts, no one will take care of ringing the bell for you.

 

2. Sell fast your profit stocks, and get stuck with losing stocks

 

Investors are afraid to admit a mistake and stay too long with a losing stock, even though the company's business has deteriorated. On the other hand, they rush to sell stocks that brought them profits, even though their business is only getting better.

 

3. Sell your winning stocks first

 

During periods of falls in the markets, there are investors who tend to realize the good stocks and stay with the losing ones. This strategy often turns out to be wrong. When the markets climb back up, it will usually be the good stocks that recoup most of the declines, and the worst ones will continue to lag behind.

 

4. Increase holdings in a losing stock

 

Investors tend to base their purchase on falling stocks. That is, to buy an additional amount of the stock that is causing them heavy losses, believing that they are lowering the average purchase price and the stock will go back up. Try to stop this because you are only increasing the risk of a larger investment.

 

5. Sell in a panic

 

In a period of sharp declines, you have to think before you run to sell, when usually the most profitable advice is to wait until the rage passes. What has characterized trading in recent years has been Buy The Dip assuming the Fed is behind the market. But now inflation is at the forefront of his mind, and the market is wondering when interest rate hikes will stop, if only to test the impact on the economy. In the meantime, the members of the Fed continue to express themselves in a hawkish and determined manner to lower inflation towards 2%, and the interest rate hikes that are so bad for the market are expected to continue.

 
 
     
 

Disclaimer: The article does not constitute investment advice or marketing that takes into account the data and the special needs of each person.

 
 
 
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Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by TrendSpott including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.

 
 
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Top Leaders

Categories

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Option Activity

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Institutional Holdings

Tags

New Products

FDA Approvals

Agreements

Financial Reports

 
 

Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by TrendSpott including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.