when the stock market starts to decline more than 20%, then it is called a bearish market. People are more fear of
not getting fear
most people start to fear the bear market. when someone can able to control their fear of emotion during the stock decline. can make more money than you expect
when stock indexes like the Dow Jones Industrial Average and S&P 500 begin to decline in price, People didn’t expect that such certain stocks going to me crash.
because the total stock market moves irrationally every time. majority of people think the market is always being and moving rationally.
the stock market theory says the market always behaves rationally. warren Buffett has made more than 86 billion dollars in the stock market. which says the market is always irrational.
so which side did you accept? you’re going to accept with stock market theory (or) Warren Buffet. 99% percentage of the people believe in stock market theory. who know the market behave irrationally. they always made millions and millions through stocks.
warren didn’t like to buy when the price was so high . he always bought at a very low price. when comparing other investors and speculators in the world.
wait for the right price
moreover, if you didn’t wait for the right price (or) you don’t know what you’re doing (or) you don’t know at which price to buy that particular stock. then you like other speculators and stupid investors. you’re not the one who going to make millions and billions in the stock market.
rule investor always follows the rules they know, when and at which price (or) they want to buy their certain stock. however these types of investors like the stock decline and big bearish market.
for this reason, it is an opportunity for some people like Warren Buffet. to buy the stock at a very low price and sell it at a high price to make big money in the long run.
if you don’t know how to invest like Warren Buffet and make a big chunk of money in stocks. then I recommend reading and learning the rule investing articles.
warren said risk comes from not knowing what you’re doing. when you don’t know about something, what you’re doing. then which leads you to take a high level of risk in the market.
then you lose your entire investment money. understand how the market works, and read the fundamental statement of the business. learn how to find intrinsic value and buy at a very cheap price with more patience.
when stock goes down buy more
many people who are good at investing, make one big mistake if the stocks go down after they buy, they get fear of emotion. and stop to buy stocks at very cheap prices.
they forget that, were this stock never again going to reach at this price. they don’t know they are buying now, 80% off of the real gold. it is a big discount, but ninety-nine percent of them don’t buy when the stock crashes.
for example, let’s say you’re buying Apple stocks at ten dollars. after buying the stock, the price of the stock started to go down to eight dollars. what do you do? buy again because it is more cheap than last time. but most of them are feared of their invested money.
finally, follow all three lessons from this article. it will help you to protect during the bearish market. however, if you have any more doubts bearish market, then feel free to contact us.