The sky is falling! no wait, it’s just the stock market
We just went through the largest one day drop in three years. Everybody is worried that the Fed is going to go berserk and raise rates nonstop for months on end. All kinds of traders and analysts are driving stock prices down like there’s no tomorrow.
Me on the other hand, I don’t listen to these ‘doomsday’ predictions. Something everyone knows is that the stock market is constantly going up and down. So you’ve got two basic choices when your stock is down in the dumps.
First, you could stress out about all the money you have lost. The next step involved in this train of thought is to sell your stock as it gets towards the bottom. If you do this, you’re breaking the only rule of investing. You’re losing money.
Instead of buying high and selling low, just relax a second. Chill out. Count to ten.
Now has the stock bottomed out? Is the stock doing anything wacky that the market as a whole is not? How do the earning reports look? (find out at sec.gov)
Now that you’ve taken a look at everything, Should you be selling it? Or should you be loading up on it and buying all the stock you can get your hands on?
Going against the grain in the stock market can often yield great results. Always do your research before doing anything.