How do you cope with volatility?
“The true investor welcomes volatility… a wildly fluctuating market means that irrationally low prices will periodically be attached to solid businesses.”
Warren Buffett
As an investor, I welcome volatility because I see opportunity coming. Investor with a growth mindset will see this
When the share price going downtrend (bear) 📉:
1. Share price is cheaper I can buy more or buy the dip; an opportunity to acquire more share
2. I can buy to averaging down my price
3. I can earn a profit by short selling a stock
4. I can earn income by selling call option or buying put option
When the share price going uptrend (bull) 📈:
1. The share that I'm holding is earning a profit
2. I can reap a profit by buying low and selling high the next day
3. Company is doing well and pays higher dividend
4. I can earn income by buying call option and selling put option
Bottom line
Rule #5 Stay calm - It's okay not to have everything figure out. Knowing that in time you'll get there.
Warren Buffett
As an investor, I welcome volatility because I see opportunity coming. Investor with a growth mindset will see this
When the share price going downtrend (bear) 📉:
1. Share price is cheaper I can buy more or buy the dip; an opportunity to acquire more share
2. I can buy to averaging down my price
3. I can earn a profit by short selling a stock
4. I can earn income by selling call option or buying put option
When the share price going uptrend (bull) 📈:
1. The share that I'm holding is earning a profit
2. I can reap a profit by buying low and selling high the next day
3. Company is doing well and pays higher dividend
4. I can earn income by buying call option and selling put option
Bottom line
Rule #5 Stay calm - It's okay not to have everything figure out. Knowing that in time you'll get there.
We need to know how to invest in a bull and bear market. More importantly we need to manage your emotion : fear 🙀 (panic sell) when the market crashes and greed 😼 (fomo) when the shares rallies. Also to learn (and re-learn) on how to adapt to new businesses and technologies when the dead cat bounce 😸 😎
'It is not the strongest of the species that survive nor the most intelligent but the one most responsive to change."
Charles Darwin
$Tesla(TSLA.US$ $Apple(AAPL.US$ $DBS Group Holdings(D05.SG$
'It is not the strongest of the species that survive nor the most intelligent but the one most responsive to change."
Charles Darwin
$Tesla(TSLA.US$ $Apple(AAPL.US$ $DBS Group Holdings(D05.SG$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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snoopy123 : wise words..
Shuseido : Great advice but very hard to implement.
You will be the successful few if you can do it.
ZnWCOP Shuseido: Agree. It's always easier said than done. However, I find than writing out my thoughts help to revisit my investment goal -why I started to invest? I'll take note of your comment.
ZnWCOP snoopy123:
