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| | | 2021 has been a tumultuous year for financial markets everywhere, and it doesn't look like it will slow down. Now that so many people are interested in investing, there are many terms being thrown around and one of the most popular terms is "panic selling". Panic selling occurs when an investor sees the value of an asset rapidly decline and, in a panic, the investor sells in order to minimize their losses . Panic selling commonly occurs among rookie investors, who are experiencing a rapid loss in profit. | | Panic selling has become a common thing this year, mainly because a lot of people went into investing without any research. So, here are some tips, with experiences, on how you can avoid panic selling. | | Only invest what you can afford | | In January, I decided to buy AMC and GME for about half of my savings account. Was it a smart decision? Yes and No. I'll be honest with you, I bought into the hype. At the time, it really sounded like a great idea because I thought the stock would go up and it would be a great way to get some quick money. I figured that I could take half of my savings, grow it, and get out quick. Like many rookie investors, I would soon find out that this is not how any of that works. At all. | | When you are investing, it's important to only invest what you can afford. During this time, a lot of people sunk money meant for payments, like rent or car bills, and they ended up losing big. Day traders usually have a certain amount of capital saved up specifically for putting it into the stock market and a smart decision would be for you to do the same. | | Know that some investing days will be bad | | The days when your stocks make profit are good days. Very good days. But the days when your stocks turn up a loss are the worst days. | | The day after I invested in GME and AMC, I saw my stock portfolio almost double. It was a great day! A few weeks later, however, my stock portfolio was valued at a $970 loss. It was one of the most gutting experiences of my life. In fact, I'd be lying if I said the ordeal did NOT take a psychological toll on me...because it did. The good thing about my situation is that I wasn't in dire need of that money. I didn't HAVE to take the money out then and there because I was smart enough to only invest what I can afford to lose. | | But still, it hurt to see a potential loss of almost a thousand dollars. If I could go back, I would tell myself to either brace for the worst days or keep the money in that savings account. It's important to know that not every day will be a green day and that the red days will hurt. | | Be Prepared to hold | | At my lowest moment, in February, I decided that the only thing I could do was hold onto the stocks and wait to see what happens. Since then, GME has been a roller coaster, while AMC turned out to be a really smart buy. I'm still in on both stocks, but I definitely didn't buy any more than what I did in January. Some days have been green and it's interesting to see where my portfolio will go. Aside from that, I have a few backup stocks that keep me from seeing a complete loss. | | I'd call myself lucky, but really I was smart enough with my investment that I could afford to be patient with it's growth and as investors, it's important that we play smart. | | | | | | |
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| | | Biden About to Unleash Bitcoin Crackdown? | | Evidence is growing that the U.S. government is conspiring to take down Bitcoin. The signs are everywhere. The CEO of Kraken, a top crypto exchange, warns a "crackdown" is coming. And if you have a bank account, collect Social Security or get a paycheck, it is going to impact you, even if you don't own Bitcoin!
Urgent briefing has the details. | | | | |
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