Ask Leo: What Are The Reason Why An Investor Should Not Sell During Market Downtrend?

An Investor need to understand the market situation before Investing and the most important part of it is how an investor manage to put their emotions in check during this kind of situation. An Investor should know how to manage their emotions and about letting their emotions like fear and anxiety push them into a rash decision and trade their stock into the market downtrend.

It is very important for an investor to have a proper understanding of the market and the cash flow management in this kind of situation. An Investor should look closely at the market history and the will realized that after every market downtrend always comes the market uptrend where an investor recover their portfolios value.

If an investor have a proper planning, it is very important to maintain fear and to avoid a total losses because of them selling in haste. Patient and hodl onto the stock during the market downtrend is an advantageous to the investors because most of the Investors who mostly have a higher returns are those who are patient and hodl, because they believe that the market will surely recover again and if an investor sell during the downtrend they are liable to record a certain loss.

Timing of the market can also be dangerous for an investor because it is possible to miss out some of the market best day. An Investor should see market downtrend as an opportunity to build their portfolio by Investing more and buy more stocks instead of selling their stocks. Even though the market might keep going deep down and down, using of the dollar cost averaging will definitely helps to build their portfolio.

It is good for an investor to have a long term Investment mindset because it is the best way to surpass the market downtrend. An Investor who invest and hodl onto their stock during downtrend will definitely witness the impact on their portfolio compare to those who keep on selling during the market downtrend. It is good to have a focus on the long term Investment scheme which will prevent an investor from being control be the emotions such as fear and greed that can affect their objectives.

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