The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
Be ready for the next market fall
All of us have the fear to loose money. And, when the market crash happens, most of us keep it to ourselves. However, it’s not the best approach as we just sit and loose the potential profit we would have, if we were a little bit braver. So, let’s learn what every trader should do, when the market falls again.
Yes, it’s hard to leave emotions aside, but it’s so important not to panic in times of market crashes. For example, in 150 years the S&P 500 fell by 30% or more 15 times, or about once a decade on average. And what does always happen next? It recovers again and again. Sometimes it takes months, less often – years. It’s not a good idea to park your money in the stock market in these moments, but if you already have them, it will be better to hung on as stocks will rebound anyway. While many investors panic and sell all their stocks settling for low prices and possibly even significant losses.
Make a wish list
The most famous investor Warren Buffet said: “We [he and partner Charlie Munger] simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”. Make now a wish list of stocks you’ve always wanted. So, the next time, when the market crash happens, you’ll enjoy buying all of them at very low prices. And then the market bounces back, prices will surge and you’ll gain.
Make an emergency fund
This extra money will give you an opportunity to buy assets at good prices from your above wish list. Moreover, you won’t depend from any unforeseen factors.
Diversify your portfolio
Don’t focus only on one currency, stock or any asset. Rebalance your portfolio and you’ll reduce your risks significantly. Finally, be ready to react, monitor the market, remember that even the bearish stock market is an opportunity!
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).