What to do when you see a sea of red?

Hi everyone,

The start of the year has been pretty rough. This is true for stocks & crypto. January 2022 is on track to be the worst January in history of the stock market. But now comes the big question: What do you do in these situations?

It’s very concerning when you see that most retail investors were the ones selling on the 24th of January. Right after the big selling from retail investors was done, institutional investors started buying the dips and we ended up in the green with the major indexes!

First tip: Don’t sell when everything is falling down. The reason of the drop has probably 99% nothing to do with your company and its fundamentals.

The easiest thing to do is to sit it out. Wait till it’s over. Close your portfolio for some days, and place your focus on something else. So far all crashes and corrections have recovered.

Another thing what you can do is average down. Buy small portions of stocks throughout the drops of stock prices. Keep buying to lower your average buying price. That way you will get better returns in the future when the stock recover.

When you do not feel comfortable averaging down. You can wait till some positive momentum is coming back to the market and grab some shares when the market is in a recovery phase.

Most important thing is to remember you are not in this alone. This community is build to hold strong together, and help each other reach a bright financial future!

Goodluck everyone in these difficult times. If you want insides on how I’m handling my portfolio, you can check out my YouTube channel below. Keep in mind that I’m not a financial advisor, just a stock addict :wink:

Stocks crash video: Stock Market On Track To Make January 2022 The WORST In History! - YouTube
YouTube Channel: https://www.youtube.com/channel/UC74ascgDjOZzQXXCZGisQtw

5 Likes

this is so true… In general its probably for the better to not check your portfolio every day / week. Even when the markets are doing well. If the fundamentals of the company are the same, there is no reason to check the price every day.

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I bought Microsoft and Intel yesterday with the massive dip, I abolutely LOVE these flash sales.
Only thing I did wrong was that I bought them @ 10:15 instead of 12:00

Usually what you see when the market opens is that the price either drops or rises quickly for the first half hour, and then it stabilises upward or downward depending on the way it went shortly after opening.
It very rarely does a full swing like Yesterday.

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Yes same here. Bought Himax (HIMX) and Daqo New Energy (DQ) at the open and it dropped even way more than I was expecting. But we are not here to perfectly time the market :smiley:

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