What is stock market correction?
A stock market correction is when the market falls 10 percent from its 52-week high. Wise investors welcome it. A pullback allows the market to consolidate before going toward higher highs.
Stock market corrections are considered to be very scary but normal. In most cases they’re signs of a healthy market.
Stock market corrections occurs between eight to twelve months. And it can last for almost a month and 24 days. That’s close to two months.
As one can not do without experiencing a stock market correction as an investor, how can one deal with it, when it happens;
The First thing is to resist the urge of short term money trading. some people might decide to invest their money on other things, pending when the stock market will be back to normal. you need to avoid this because at the long run you can end up loosing your money.
Quite a lot of people lose money by trying to move their money around to participate in the ups and avoid the downs. No one wants to have a lose, instead they want to have a gain but these things are inevitable for an investor. There are times you make so much gain and sometimes you lose.
Findings have shown that not only do most people lack the discipline to stick to a winning investing playbook in correcting markets, they tend to transact at the wrong times causing even larger losses.
What I’m trying to say is here is “be patient enough” do not diversify your money into fast money making platforms because of a stock market correction. It is always better to be on a safer side.