The Market is Crashing!

The market is crashing! The market is crashing!

Truth be told, we are hearing this almost every day. And it really will crash. But the question is when and are you ready for it?

If you look back into historical data, the market will experience either a major or a minor crash every few years. And what happened soon after that? The market bounced back from the crash and moved on to achieve new highs. Don't believe me? Here are some records:

The market crash is not something that you should fear. Rather, you should anticipate it with eagerness. Just like when the shopping mall goes on sales every now and then, market crashes mean prices of stocks in the market are sold at under discount. This will be the best time to buy in and two the benefits in the long run.

What you should and should not do when a market crashes.

No. 1 - Don't do anything.

This is a very hard thing to do. Everyone is selling their shares like crazy because the price is going south. All the experts will be telling you that this is the end of the world. You will be tempted to sell too to reduce your losses. But if you have bought into a good company in the first place, keep faith that everything will be okay.

When the market crashed, as long as you don't sell your shares, you are only experiencing paper loss. It is nothing. Once the share price moves up again, you will recover the paper loss. And it definitely will.

No. 2 - Buy into great companies at a bargain.

Before a market crashed, do your research into companies that you think are good or great companies. Know what is their values and keep watch.

When the market crashed, a lot of companies shares will be sold at a discounted price. Some of these will be companies that you might have researched. So, when the shares prices of these companies are a bargain, buy-in and let it grow.