The world is facing an economic recession and so the stock market is seeing a bear run. The opportunity to make fast money is slowly fading away. Only long term investments will bear fruit and it makes sense right now to sit tight with your hard earned cash, rather than burning your pockets.
According to statistics the NASDAQ was down nearly 9% in the month of May and this calls for serious thinking. Even if you had a diversified portfolio chances of making a profit is very low. Most of the people have lost money in the stock market as share prices tumbled. You can take some rest, and follow some of the tips below to stay away from the stock market during this low phase.
- Don’t buy on impulse, even if you are tempted to buy a stock, just walk up from the computer, take a break and then sit down again in front of the screen.
- The first step is actually to delete the bookmark of your broker login page, as most people are lazy of typing their login daily. So even if you see some great news you will get some time to think when logging onto your broker id..
- Stock picks are not the only subject worth reading in stock market news. Do some research on other topics of interest as well? Try to spend some time on exercising as it clears your mind and makes you think logically. Spend extra half an hour on the treadmill. You will have less time to think about buying stocks.
- Talk to family and friends about stock market losses. If you get to hear horrible loss stories you will be convinced to stay out of these conditions. Keep your cash safe in the locker. This is definitely not the time to make quick money.
- Pursue your hobbies right now. Learn an instrument or learn a new language. You will spend less time on the computer screen and can save some cash. You can even learn to cook or read your favorite book that you had kept aside from months.
- You can read interesting and diverse topics on the stock market but avoid reading the words “fifty stocks that are the best”, because you will end up buying again. Stay away from the stock market till the market picks up a bit.
You can avoid losses only if make up a determined mind and stay away from picking up stocks.