How To Deal With A Market Correction
03/03/20 • 21 min
No pain, no premium.
The unfortunate reality is that to benefit from the returns of financial markets (especially the stock market) we have to be willing to accept the inevitable risk of short term declines.
Declines and periods of volatility happen regularly and are a normal part of investing.
The ups and downs can go on for weeks and months, which can be psychologically taxing, even when it’s a normal part of the market cycle.
The best thing you can do is to develop a plan AHEAD of time and then remain disciplined.
Why?
Because panic-driven reactions don’t lead to smart investing decisions.
The biggest mistake investors can make is not having a plan ahead of time and/or not remaining disciplined.
Tune into this week's episode for my complete thoughts on dealing with market corrections.
No pain, no premium.
The unfortunate reality is that to benefit from the returns of financial markets (especially the stock market) we have to be willing to accept the inevitable risk of short term declines.
Declines and periods of volatility happen regularly and are a normal part of investing.
The ups and downs can go on for weeks and months, which can be psychologically taxing, even when it’s a normal part of the market cycle.
The best thing you can do is to develop a plan AHEAD of time and then remain disciplined.
Why?
Because panic-driven reactions don’t lead to smart investing decisions.
The biggest mistake investors can make is not having a plan ahead of time and/or not remaining disciplined.
Tune into this week's episode for my complete thoughts on dealing with market corrections.
Previous Episode
How Aggressive Should I Be With My Employer Equity Compensation?
In this podcast episode, I discuss the framework for deciding how aggressive to be with employer equity compensation.
Equity compensation discussed includes Options (at-the-money vs out-of-the-money) vs Restricted Stock Units (RSUs).
In situations where there is a vesting schedule (over a 3,4,5 year period), it almost always makes sense to take the equity compensation (vs cash).
However, I also discuss situations where taking cash would make sense based on personal financial circumstances.
Equity compensation is an amazing opportunity to concentrate and grow your wealth. You just want to make sure you have a plan in place to minimize the tax ramifications and diversify in the long term once you've built your foundation for financial independence.
Next Episode
Robinhood Culture, Millennial Day Trading, And The Rise Of DDTG
Day trading is nothing new. Whenever financial markets start to get extraordinarily volatile you tend to see an increase in the number of new day traders enter the market.
Add in the element of sports gambling being diminished (due to the pandemic), and you get a recipe for increased speculation from those looking to make quick gains.
In this podcast episode, I talk about the difference between entertainers and those providing real practical financial advice AND why it's important to keep the proper perspective when making investment decisions.
Keeping the proper perspective is crucial to avoiding the BIG mistake, and ultimately, continuing to build on good financial habits.
Connect with T.J. on Twitter: https://twitter.com/TJvanGerven
To learn more about working with T.J. head to https://www.modernwealthbuilders.com/
If you like this episode you’ll love
Episode Comments
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/do-more-with-your-money-101710/how-to-deal-with-a-market-correction-5347529"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to how to deal with a market correction on goodpods" style="width: 225px" /> </a>
Copy