In the impending end of the month of February, we saw the lingering effect of the government shutdown which lasted for more than a month. Both the Dow, Nasdaq, and S&P indices are in on the downside and are blinking red. Car manufacturing companies are taking the lead in the upward prices. The 33-days shutdown was a gruesome time for the investors. Now that it was over, there are two events that could possibly happen according to Mile Loewengart, the head of the investment strategy at discount broker E-Trade. It could be short-term volatility or a more pronounced correction.
Investors, either veteran or a newbie, as well as entrepreneurs in the market, are experiencing volatility. Though these drops are temporary, the bearish market right now is only temporary and bull market will appear. Nobody knows when will the bull appear again, the wait is a painful thing to do. Sandy Chin, the brainchild of the Tidal Bore Capital hedge fund, has five tips in tackling market volatility and make better choices for your investments.
- “Research the History of Your Stocks”
When a stock’s price is dipping into its own historically lows, a lot of people, especially those who are newbies in investing, will sell the stocks and reap the loss. However, it has been proven over and over again that based on the history of the stock, the prices can increase and recover over time. That is why according to Sandy Chin, before even investing in any stock, researching the history is a good idea to understand when to buy and when to sell.
- “The More Opinions, the Merrier”
Sandy Chin recommends listening to as much investment advice as you can. Even though this could be confusing to those who just started their investment career, listening to a lot of advice can help in molding an investor’s knowledge in the market.
- “Invest in New Stocks”
When a certain stock an investor follows went into its “sell” cycle, Sandy Chin recommends exploring new stocks. This is to maximize investors potential earning at one time. Exploring new stocks will also help in learning different kinds of businesses and how their stocks perform in the market.
- “Go into Investment with a College-Like Mindset”
Even though the stock market is a cycle of ups and downs, investing techniques are always changing. There are always things to learn and so techniques to use. While the market is volatile, it is a good chance to learn something new and enrich the existing trading knowledge.
- “Don’t Undervalue the Power of the Individual Investor”
According to Sandy Chin, Entrepreneurial organizations often start out as individuals and evolves into more ambitious and eager institutions. These forces can make a massive change in the economy and stock markets. Individual investors should not be overlooked, especially if the market is volatile and uncertainty lingers on the stocks.