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Stock Market is going through real turmoil for the last few weeks. The market is dropping every day and causing worries for many. But this volatile situation can also be used as an opportunity if one can avoid disaster. Let’s have a look at how this market scenario can be survived by disaster management skills.

Long term perspective

– #invest_for_long

To survive the volatile market long-term investment perspective is the most effective one. Now, investment for a long time can bear different meanings to different people. For some 10 years or more is long-term, for some 4-5 years, for others, one year is a long- term investment and for a trader may be even a day is long-term. A long-term perspective is a secure way of decision making. It is helpful in every sphere of life. It is true about stock market too. This helps to figure out the impact of your decisions on the investment plan. Trading is generally considered a very short-term investment option from a few minutes to a few days only. But in a bad market phase if we concentrate on the long-term approach even in trading then we will be able to implement better trades. A long-term approach will stop you from chasing trades and as a result, you’ll be able to spot sustainable trading options.

Trust yourself

– #be_confident

For a chaotic market scenario, you need more precision over choosing your stock. In this situation, you should invest in what you, yourself know a lot about. Do not listen to others. Listening to hot tips may ruin your wealth. Use your own judgment and to reach the right judgment study the market methodically. Right study and right judgment may be the savior light for you to survive. For that, you need to learn about the market from the core.

Diversify your portfolio

– #multistocks

It can be interpreted as an all-time hit trick to survive a difficult market by diversifying your portfolio. “Do not put all your eggs in one basket”- is a popular phrase in stock market. Invest in a staggered manner into different stocks. Often people fail to choose the right stock as they come into the market without learning. Do not sell your fundamentally strong stocks in a falling market. Quality stocks always help to create wealth. So, wait for the right moment and meanwhile know the market properly.

Give yourself time

– # keep_patience

Do not hurry. Give your decision enough time to sink in. Keep a close watch on the market. Interpret the day-to-day rise and fall pattern of your preferred stock. Think what would be the impact of your decision. Don’t get nervous overseeing your stock going down. Keep yourself calm. Decisions taken in hurry can be fatal later. If we look at the history of the stock market, we can see that the market will not be the same forever. We have seen it to rise again to its highest. So keep patience. You will get your desired result sooner or later.

Money management

– #budgeting

Investing in a messy market needs precision and planning. Even a low market can be utilized as an opportunity to make profit. But for that, you need to chalk out your investment plan properly. You need to categorize your wealth keeping in mind your necessities. You must have a clear idea about how to deal with your risk management efforts. To create a portfolio with proper risk management instruments you must have proper knowledge about the details of the stock market.

Arunava Chatterjee

Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.