11 Things To Do When The Stock Market Trading is Down

When the stock is down, the following are the 11 things you should do:

1.     Research: Research is the roadmap for raking in millions into your bank account from the Stock Market. Research is the major work everyone who wants to be an authority in the stock market should subscribe to. There is a place of research in raking in the millions you have dreamt about from the stock market, most especially when the market is down. You should be doubly sure of the stock you are buying. For example, two clients gave me money to buy in the bearish period. Both wanted me to use my discretion to buy. But one of them wanted an immediate purchase, while the other one waited for enough time to research and then purchases were made for him. Definitely, the second person gets a better stock and better returns.
A woman was telling me about her experience with her husband. She said that for about two years, her husband has been investing in the Stock Market , but last year,  the husband always come from work around 6 pm and will be with his laptop till 8 pm and from laptop to dinning and dinning to bed. This was the situation for about six months and the woman was forced to asked her husband. “Did you marry me or the laptop?” he replied “No”. December last year, the woman’s husband asked her where she intends to spend her Christmas and New year Holiday, the woman replied : “In  U.S, with their children. “OK”, the man said and left the house.  He came back from work with all the hotel reservation receipts, the flight tickets, visa and other documents and he threw them on the table. The woman was dumbfounded when she saw the document for her, four other children and the husband. She was so happy and said”where did you get the money for all these?” The man answered : “from the Laptop”

The man said that he had converted N6 million to over N30 million within 54 months in the stock market, It is real, it is possible. You can witness this if you can do your research.

Research shows that if two people have money, they will be influenced by different parameters in their investment patterns. For example:
Mr. Bayo has 80% knowledge of the stock market and N100,000 to invest and Mr. John has 20% knowledge and N100,000 to invest also. Mr. John will lose part of his N100,000 in the stock market to Mr. Bayo because when someone is losing money, someone else is making money. Do you know that the higher your knowledge of how play the capital market , the higher the profit? The truth is that when you are making money someone else is losing money.

2. BUY: Buy Stocks That Are On Technical Suspension in which volume is high and trade is high. Because if buy volume traded is low, the stock price may be on the downward trend. Do not just stock anyhow, if you buy stock anyhow, you will buy stock that will make you lose money anyhow. Same for Stock on technical suspension, Buy stocks that are on the technical suspension because you can see and be sure they will rise.

3.     Hold: Hold on to stocks that are likely to give bonus and dividend because they appreciate. When the market is down, these stocks are in good position to appreciate. Turn the stocks into long term investment if you discover the above secret about it.

4.     Check Out The Year End: This is a great signal to appreciate  many banks stock. You develop a database for it.

5.     Look For Strong Factors: These are conditions that must be in place before the price of the stock can move.

6.     Stock on Sentiment Raises So Much During Bearish Period: Never buy a stock on sentiment. Market sentiment is referred to as the Ignorant belief of the market. What most investors believe about stock is what makes them to invest on it. Most investors believe that if a foreign investor has invested in Afroil and that new investor has come into Capital Oil, then capital oil is good to buy. If you do not want to lose money, never buy a stock on sentiment. Take for example, a lot of people have made money from the Afroil and Capital oil while after the investigation of Securities and Exchange Commission(SEC), Some other investors are hanging on the Stock, because they were just moving on the market sentiments.
7.     Look for how Long Bearish is Going To Last: Make sure you have an understanding of when the bulls will return to the market.

8.     Follow Top Gainers and Losers for About 2 Weeks: You can make a table for that on your computer or in your jotting book and from there,  select the direction of the market.

9.     Use Concentration Strategy: Whenever you are doubly sure, you should invest all your eggs in one basket. If you are very sure that the stock is going to rise, then concentrate your money there. If you are sure that a stock like Juli Pharmacy, Thomas Wyatt is going to rise, then if you have N1 million which you  wanted to invest, instead of diversifying into two or three stocks, just concentrate on what you are doubly sure of.  The richest man in the world, Warren Buffet, has used the concentration strategy over the years and this has generated a lot of cash for him.

10.   Go Back To Price Trend: It gives you an Insight. These are some price trends.

11.   Do not be in a hurry to buy: Many investors loose money in bearish periods. Look before you leap; hence they loose money in bearish periods. Look before you leap, screen and apply at least the 10 ways test for any stock market you want to buy.

Remain financially intelligent.

Further  Reading

How To Make Millions In Stock Market When Ever The Bull Market Returns

How To Participate In The Global Stock Market Trading

10 Smart Ways To Learn Stock Market Trading As A New Investor

How To Position Yourself For Stock Investment

If you're new here, you may want to subscribe to my RSS feed. (you can subscribe via email as well). Your comments and suggestions for stories are welcomed.Thanks for visiting!