5 ideas to better prepare for the next stock market crash/correction.
In 2020, I invested most of my cash in one stock ETF (indexing the worldwide market) in the middle of the COVID crisis.
When the market goes down, rationally, we all know that we should buy.
And yet, most investors sell.
I am no exception to the rule, and I have done so in the past.
But during the last crisis, I did something different and invested heavily. It gave a boost to my search for financial independence.
5 things that made it possible.
When the market goes down, rationally, we all know that we should buy.
And yet, most investors sell.
I am no exception to the rule, and I have done so in the past.
But during the last crisis, I did something different and invested heavily. It gave a boost to my search for financial independence.
5 things that made it possible.
1. Knowledge.
“During this accumulation phase, celebrate market drops. While you are in the wealth accumulation phase, these are gifts. Each dollar you invest will buy you more shares.” JL Collins
2. Visualization.
Why am I telling you this?
A crash becomes the "small call." As soon as it appeared during COVID, I started to invest. I was mentally prepared.
3. Reflect on the subject and develop your principles in calm weather.
4. Isolate yourself from the noise around you
5. Have your resources available.
Markets correct themselves regularly and sometimes collapse. Responding without emotion is rational but extremely difficult. Prepare yourself like an athlete and win your next mental battle.
Disclaimer: I’m not a financial advisor. All information posted is merely for informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information, you do so at your own risk. :)
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