How To Avoid Self-Inflicted Losses In A Down Market

대한민국 뉴스 뉴스

How To Avoid Self-Inflicted Losses In A Down Market
대한민국 최근 뉴스,대한민국 헤드 라인

If you're checking, chasing, and stock-picking, you may increase the odds of self-inflicted losses when the market is down.

  • 📰 Forbes
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 53%

For single stocks, drawdowns like this aren’t uncommon. According to JP Morgan, between 1980 - 2020, roughly 45% of stocks that were ever in the Russell 3000 fell 70% or more from a prior peak and never recovered. Almost a coin toss.

So if you aren't planning to make a change, what’s the point of looking? If there's a reason to trade, make sure recency bias isn't influencing the decision.It can be tempting to make changes to your portfolio after recent events. Looking at various equity indices for company size and factors, there's little correlation between the best or worst performers in the past month or year versus longer periods of time. In fact, recently, the outcome is reversed.

If you sell an investment for a loss, you can't buy the position back for 30 days. So you'll either buy something you don't like as much or stay in cash. The market may move significantly during this time - four indices above have gains over 10% in a month.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

Forbes /  🏆 394. in KR
 

대한민국 최근 뉴스, 대한민국 헤드 라인



Render Time: 2025-01-14 00:43:23