Rollercoasters can be both gutwrenching and thrilling, depending on whether you're gently climbing to the top of a peak or down in the depths with your world about to be turned upside down.
It can feel exactly the same with investing. Stock markets don't move in a straight line. They have their ups and downs, but it's really hard to get the timing right when you're being led by your emotions.
The fact is that the stock market has probably anticipated exactly what you're thinking, because millions of other investors are thinking the same thing as you are. Therefore, the risk is that you end up selling low and buying high. So here are a few dos and don'ts for market turbulence.
Firstly, don't panic trade when shares fall.
Emotions aren't a good guide for action.
Secondly, stick to your long-term plan.
This story is from the November 2022 edition of Personal Finance.
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This story is from the November 2022 edition of Personal Finance.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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