Skip to main content

What to do in bear market

 What to do when the market is heavily falling down? It is not certainly cell. Of course, you can sell if it is calculated and like you intended. But for the majority of the mobs fall into the mode of panic selling. The reason is quite simple. They are out of their wits. And they are acting like nuts. That won’t solve any problem. It actually makes things worse. What often people don’t realize at this time is that they are actually under the sunk cost fallacy.

Sunk cost fallacy is simple to explain. But the practical solution is often to perform and very much rare to find a person who actually does above the fallacy trap. Sunk cost fallacy can be simply defined as an action inspired by fear and panic. But sadly these are the times we mostly do insane things captivated by decisions taken out of our wits.

To make a better decision, either we have to be mindful or must be prepared. So when we are prepared, we know the decision that is ought to be taken at unanticipated times. Do it now and make the change. When it comes to investments in a heavy bear market, the wisest thing to do is nothing. Just stay there and simply watch. Or you can do the dollar-cost averaging stuff.


Comments

Most viewed

Investing with index

Expecting return a way more than the index average can be of greed influence. Index do gives a handsome return that sometimes even surpasses majority of the stock performance. But it is also true that index may stands still for some years. Yet in the very long it is way better than FDs.

Private blockchain

The ledger in blockchain need not necessarily backed by a currency. For a system that need large amount of nodes, like in case of public permissioned blockchain, it is essential to give an incentive either in form of reduction in transaction fee or some currencies. This is a high incentive for those who works with high computational powers. They would demand this. But in case of private blockchain there is no need of providing a currency in the form of incentives. Private blockchains are used when the peer nods comes to know each at least half of them. They form a network of peer group and validate the transactions. Since private blockchain entitles the identity of each nodes, it is impossible to get a lot of people through. So these private blockchain lacks popularity and hence there is no coin. But this is extremely helpful in large corporations to store and validate data. They can create a supply chain where everything could be traceable form the very beginning. It involves no s...

Diversify

Diversifying your portfolio is the best way to sustain in the market. When one goes down, other tops. But make sure that everything you invested was invested based on your knowledge.

Compounding

Small everyday improvement leads to a large improvement. The compound effect is real and must be experienced. It is like witnessing our own growth for near as far. There is nothing to wonder that it is the eighth wonder.