What Not To Do To Protect Your Portfolio In A Bear Market
In a bear market, there is fear in the market. And you feel it. Negative news comes out in the market. The market can crash further. You make a portfolio, but if you fail to protect your portfolio in a bear market, you will not get what you expect from your investments.
Don't change your decision out of fear
Out of fear, you might change your decision which will affect your investment negatively. Fear and greed can hurt you more than you think. There is a time you should not do anything, but you cannot take it anymore. So the decision you make is driven by fear and you end up losing money on your investments.
Don't get scared about the falling figures
When you look at your portfolio in a bear market, what do you see? Most of the time, you only see one color, that is red. Falling figures make you scared because it shows the current market value of your investment. This is something you did not imagine you would see when you make investments. Don't get bothered about the falling figures.
Don't cash out
You think you have already lost a lot of money. You don't want to lose everything, so you sell and cash out. The market is on a downtrend, it will never stay on this trend forever.
When the market changes its trend and the price starts rising, you miss it. Since you sell your assets, you cannot grab this market movement. You did not lose anything back then unless you sold it. So if you want to protect your portfolio, think twice before selling out in a bear market.
Follow your strategy
Maybe you follow a strategy to make investments and build your portfolio. Now you feel that the strategy you follow does not work. The thing is, when you make investments for the long term, you have to have patience and see the results in the long term.
There will be ups and downs in the meanwhile. Whether you invest in the stock market or the crypto market, the market never goes up or down in a straight line. If you cannot hold your breath and follow the strategy properly, you cannot protect your portfolio.
So what do you think you should not do to protect your portfolio in a bear market? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
