Recently our stock market is down. After the PSEi hit the all time high last month or so, it’s rallying in a down trend from sometime now. There’s a lot of reason why the stock market is down and it would be too long if we discuss it here.
If you’re an expert and been in the stock market for a long time, this is not new to you and probably you already know what to do. In fact, most of the “long term investor” or “long time trader” are happy and excited in times like this when the stock market is down.
But if you’re a beginner like many of us, it hurts in the eye. You feel nervous and you don’t know what to do. You’re scared that you may lose your hard-earned money in just short period of time. You can’t look straight at the monitor when you open your portfolio. You’re scared. It’s all red like a valentines day. Yay!
Those are just some of the agony running on the mind’s of a beginner when the stock market is down. I felt that before. I felt all those scary moments and “urgency to sell” thinking that I’ll lose all my money. And of course I lose it, because I sell. Lessons learned!
Right now, there’s a huge difference how I look and think when the stock market is down. Upon studying, reading, watching and attending some seminars I somehow learned the proper way of investing in the stock market.
And most importantly, the proper way how to think and look when the stock market is down. It really pays when you invest in yourself first before investing in any other investment vehicle available.
If you’re a beginner too, I’m sure you can relate. I feel you. But you don’t have to worry. Times like this are normal in stock market.
If you read books, personal finance blogs or attended stock market seminar you may have heard that stock market is one of the most volatile investments out there. And that’s true. It is volatile. It goes up and down. It goes sideways. It moves on its own. And no one can exactly predict what will happen next!
So what you gonna do if you’re a beginner? I don’t know. Probably go to the “place of miracle and pray?”. Naah just kidding.
If you’re a beginner just do nothing. Nothing! Feel nothing. Nothing means don’t be scared. Relax. Don’t panic and stay calm. And when you’re calm and relax, re-assess yourself.
Why in the first place you invested in the stock market? What is your financial goals why you invested here? Why you bought that stock anyway?
These questions maybe harsh or sarcastic but in reality it can answer all the questions and agony running in your mind. IF answered HONESTLY, you should know what to do. Don’t fool yourself.
If you now got the answer to those questions then execute your “plan“. This is why it is important that you have plan or goals created before you start investing in the stock market. Plano muna bago invest sabi nga ni Sir Green Stickman. Then aral muna bago invest sabi naman ni Sir Aya. 🙂
You should have answer why you invested here, why you bought that stock and why you’re getting panic. If you’re a long term investor, then be long term! Focus on your life and invest in the stock market on your schedule. If you have extra, add some shares. Don’t mind your red portfolio.
If you’re a newbie trader, then execute your plan too. Plan your trade and then trade your plan as what the expert says. If you have no plans or goals, then ouch. But don’t worry. It’s not late to create one. Re-assess and re-calibrate yourself. Set smart financial goals and act on them. Focus and then let life move on.
I’m not an expert and I’m a beginner too. Please take this as my personal point of view. As mentioned in the title, this is a beginner’s feeling when stock market is down. I’m sure you get the point. You should seek professional advise if needed.
Don’t stuck being a beginner. Continue learning. Read books, blogs, watch videos and attend seminar to get more knowledge. Take one step at a time. Starting small and learning along the way can go long way.
Investing in yourself first is the best investment you could have that guarantee high returns in the future.
Goodluck to us! Cheers!