If there’s a company you think has solid potential whose value is now down as part of a broad market downturn, then it’s probably a buy. But if there’s a stock whose value was already sinking before the events of the past week, then it’s a company you may want to be more careful with.
3. Don’t check your portfolio balance every day
We’re definitely in the midst of a rough patch as far as the stock market is concerned. And so now’s really not the time to check your portfolio daily. Doing so might mess with your mental health and drive you to make rash decisions that result in losses.
If you absolutely must check your portfolio balance, do so once a week. And also, promise yourself that you’re not going to let the number you see inform your actions.
Keep your cool
It’s natural to be nervous when stock values fall quickly. But do try to remember that stock market corrections are actually pretty common. In fact, they’ve happened about once every 19 months, on average, dating back to 1928. And while you may not be thrilled with the state of your portfolio right now, just remember that the stock market has a strong history of bouncing back from corrections. If you stay calm and keep your cool, you’ll make this current bout of volatility much easier to get through.
