The whole world went red during the period of 10-11 October, sending investors and traders alike panicking. Fear and anxiety gripped the financial markets as almost all major indices took a nosedive during those two days.
While I shall not dwell on what really happened and will this happen again next week (short answer: I don’t know), but we can learn a few quick lessons from this tumultuous session.
Lesson #1 – Do Not Panic
When news buzzed around about the fall of share prices and indices sometime on the morning of 10 October, some investors around me began to panic. The panic I saw was on a scale, ranging from ‘I am now at a loss from my entry position’ to ‘Oh no! The crash is coming!’. If one is experiencing such panic, it is normal, but if one starts to act on this panic, then it is ...
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