I have witnessed a few market drops in my time as an investor.
I started following markets during the Financial Crisis. At the time, I thought I could understand what was going on, or what it was like to manage money. But looking back almost 10 years later, I realize I knew absolutely nothing. I love looking back at those days. But at least I dove right in.
I was looking at bank stocks, and trying to figure out which ones would survive or get bailed out. I was trying to find stocks that had sold off the hardest. I was trying to pick their absolute bottom. I lost some money trying to do that.
When you look back at your younger days, you remember just how much $10 was to you. That’s a burrito, and some guacamole! Are you kidding me?
By no means, today, am I an expert at understanding falling markets. But I am learning, and getting better. I currently manage my own portfolio. I don’t ever plan to let someone else touch it. At this point, it’s me against the world. So sometimes I have to kick back, educate myself by writing my thoughts down, and share them with my whole crew online. The other day I started thinking about bear markets, corrections, or crashes.
What should I do when I think a correction is happening?
What’s the best way to approach markets during a crash or panic?
I sat down, and drew this up:
If you enjoyed this post, make sure to subscribe to my email newsletter. It goes out weekly.