Tuesday, May 11, 2010

How To Avoid From Being Panic At Stock Market Crash?

Stock Market ,no doubt, is the most important pillar of economy of any country. The rise and falls are also very often to appear at market. Sometimes it goes very high and sometime crashed down. People daily get profits and losses from it. But the important thing is “How to stand again after a complete slump?”

Being an investor, many times I also felt these crashes at stock market and also in me. Let me give some very simple and usual advises when your shares in stock market are sinking.

At crash, If your intentions were for long term investment. then just try to get relax and make this thing sure that you are not going to take decisions under emotional sentiments. Don`t try to transfer and sell your investment. First make a thorough study of market. May be it is just a seasonal temporary crash.

If the company ,of which you held the shares, is a big and strong one. Then the best thing is to sit back and wait for things happen in your way. Watch out the competition trend in the companies. If yes, then your shares value will definitely go up in future time.

There are generally two type of losses at stock market. One is realized and the other is unrealized. You are going to loss your actual money until you sell your shares.

The other side of picture is, you can take reasonable advantages from declining market. Many company can offer you shares at relevantly higher dividend rate. Find them and make some of your investments there. By playing calm and secure in any slump, you can turn your loss in your benefit. I hope you will do the right thing under stock market crash.

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