Shares/Stock Three Lessons To Be Learned When Market Crashes

Mika

VIP Contributor
The Crypto market has completely crashed, stock market indexes have gone down by double figures, and housing market price has also gone down. The markets are crashing or let us say the markets have crashed.

When the market crashes, there are always lessons to be learned

Never invest in leverage unless you are a hedge fund or have access to a lot of cash funds. Leverage refers to a technique where you borrow in order to invest with the hope that the profits will be much higher in the future. A hedge fund is an investment pool where the managers trade and invest in liquid assets for maximum returns such as short selling, leverage, and derivatives.

Never purchase at the market price. Always set a buy order limit at the level that matches your risk tolerance level. When the market is going down set your minimum buy order.

Always invest on the basis of at least a 5-year plan and cut yourself from all day-to-day market noise.
 
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