Recognizing this, we can, and must, say ânever againâ. We must do better to identify the next health threat...
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The next pandemic is on its way.
Coronavirus must help us prepare for it
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"Recognizing this, we can, and must, say ânever againâ. We must do better to identify the next health threat, respond to that threat before it becomes an epidemic or pandemic, and if it does, recover in a way that does not exacerbate health, economic and social inequalities."
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A health pandemic is dangerous, but what about an economic pandemic ? Market crashes, millions of people losing their jobs, savings and thatâs just the beginning.
What would be the best response when the stock market crashes?
At the onset of a market crash, quickly assess your overall portfolio. If you are still in profits, consider liquidating. I am talking about your overall portfolio, not individual stocks.Â
This response is taken especially if you treat trading stocks and shares as a business, and it is the bottom line that counts. A profit is a profit, and your mentality is to manage your business as a fund.Â
By doing so, you are protecting your capital and your profits. If you have separate portfolios involving long term position stocks and the short term trading stocks, it is the short term trading portfolio that warrants your attention.Â
You will move back into the market later when stock prices stabilize and you would have a good chance to buy them lower.
If you are not selling your stocks, do not average or buy more stocks at a lower price immediately, until there are confirmed signs that the market has stabilized.
It is like catching a falling knife when the market is dropping, and especially if the market drops are due to external factors. What is low today can become lower especially if the falling momentum increases as the day passes.
When a market has crashed, the mood will have decidedly changed from bullishness to bearishness. The first few days after a crash, there is confusion.
It is during these moments of confusion that having a clear direction and a trading plan for bearish periods, would put you into focus with a clear way how to trade or ride out these turbulent times.
When things look bad in the stock market sector, there will be many traders who will want to look at trading other financial instruments, such as currencies and forex.Â
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