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April 3, 2021 6:36 AM newsfeedback@fool.com (Maurie Backman)
Posted:
Updated:
April 5, 2021 12:05 PM
Your goal as an investor is to make money not lose it. But if you’re not careful, you could end up in the latter scenario, especially if you do the following.
1. Act irrationally
Stock market crashes happen all the time, but it’s how you react that can spare you from losses. One thing you must remember is that you don’t lose money in the market unless you sell investments for less than what you paid for them.
If you panic when stock values tumble and unload investments when they’re down, you’ll lock in losses. But if you sit tight and pledge to wait things out, there’s a good chance your portfolio will recover fully, thereby sparing you from losing so much as a dime.
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