SHARETIPSINFO >> Articles Directory >> Surviving A Stock Market Crash – 5 Tips To Show You How
Stock market is something where you cannot make any predictions regarding your investment. So you do not know whether you are going to make huge income or incur huge losses in the stock market. So it is better to know how to survive the stock market crash. Let us have a look at surviving a stock market crash – 5 tips to show you how.
- Living a long life – make a lifelong investment
Nowadays people are living for a long life. According to research males have reached the age of more than 70 years and there are chances that they would live up to 90. There are 50% chances of living till the age of 90. So you need to make a long life investment in order to get life long benefits. There are many investors who wish to go for short term investments and also you would find some investors that go for long term investment. If you wish to go for short term investment, then you can go for day trading. However you might also find some investors who are not interested to go for this type of trading. They think that these type of investments are very risky and so they try to avoid this type of trading. But there are some investors who wish to earn more by putting their money in this type of trading. So if you think of going for long term investments than you can also go for it.
- Look at your portfolio
You should always have a look at your portfolio. If you have made decision in targeting your investments of 20% internationally and it is now 30% of your portfolio, then it is very important that you sell enough in so that you can bring it back down to 20%. You can then use the cash to invest in other sector that you do not own. You should always remember that you should never let your money go waste because it is your own hard-earned money and you never wish to let your money go into the wrong hands. Try to rebalance where you feel is necessary. By doing so, you do not have to pay any tax on your transaction. So always look at your portfolio when you make your investments so that you are aware of your investments and also come to know whether you have made the right investment. It is very important that you get a good research of your stocks and try to make a good decision where to invest your money in the stock market.
- Diversification of your holdings
The next thing you need to do is to diversify your holdings. You should always make sure that you have enough of large caps, small cap, middle cap…etc. This is very important in order to create an investment plan in order to reach the return that you need with the risk in which you are comfortable with. There are lots of free resources available on the Internet where you can get lots of information on the different investments that are available. However you need to be very aware when you wish to go for such type of websites as there are many websites that serves the wrong information about the stock market. Also if you wish to go for online trading, then you need to have a trading account. Now coming to the websites, there are many fraud websites where it takes into account all your personal details including the details of your credit card. You should never commit the mistake of revealing your credit card details to anybody. They might make the wrong use of your card and you never know when you become bankrupt. So, you should be very sure that you visit a website that is quite safe and secured one so that you remain on the safer side.
- Make proper decisions
You should have a good decision when it comes to your investment in the market. Your aims should be very clear. So make a very good decision where to invest your money in the stock market. You can make long term decisions whether you wish to go for short term investments or short-term investments.
- Guarantee your income
You should always make a guarantee of your income. In this case, a fixed annuity should play a very good part in your portfolio. You should be able to take risks in your investment. Without taking any risks, you would not be able to make a good income out of your investments.
So in this way you have come to know about surviving a stock market crash – 5 tips to show you how. Make use of these 5 tips and you would see that there is a growth in your investment.
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