During the past several months, both the stock market and the crypto market have faced a great recession. As a result, investors, both new and old, have to adjust their strategies and adjust their portfolios almost every other day, continually looking for different ways to survive in the investor’s path. But do not panic; there must be a way out because the investment sometimes relies on one important thing, and that is “consciousness.” Today we will have a preliminary method about how to invest in the bear market situation.
What is the bear market?
The bear market is not a wildlife market at all. But it is a time when the overall market is in a heavy downturn. Like a fierce bear, leaping at you and ready to use their paws and claws to smash you like crazy. It is also used to refer to an individual stock index or stock that has dropped 20% or more from its most recent peak.
What is the bear market factor?
The most impactful factor in every business industry in the world is the news and the news that brings fear. This has led to the transfer of valuable assets to other investments, such as gold, as it is much safer and less volatile than stocks and cryptocurrencies. We have witnessed them all since the Covid-19 pandemic.
Loss is fine, but don’t lose your mind with it.
Life always has a tomorrow, so pull yourself together. For new investors, a loss of only a thousand baht could lead to insanity. But when there is a down, there is also an up, for sure. Thus, this is a good time to re-allocate new investment portfolios. Consider carefully any investments you are unfamiliar with, and get rid of any stocks that are too risky.
Know and accept how much risk you can take.
Many of you have probably taken the risk-taking surveys of the different brokers you have opened an account with. After being in the industry for a long time, you may forget that you can’t take this much risk. You should evaluate your funds and assets and go back and try the test again. You need to update whether you can still take the same level of risk at present.
Diversify investment, diversify the risk.
This is even if the market is not going down. You should be allocating money to a variety of investments. Because when disaster comes, you will still be able to survive because you have already spread your risk across different asset classes.
