There have been some volatile changes in the market recently so it’s time to analyze what’s going on and what you need to know. Dan talks about the falling prices and what they mean to you. He also shares some historical and psychological insight into how this volatility happens and how we can react to it wisely.
Dan discusses the issues presented by news bias, speculating and stock picking. He shows us different ways to view these issues and put yourself in a position to come out ahead more often. Dan emphasizes the importance of a portfolio and not reacting emotionally to the inevitable changes in the market.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- Why prices are falling and how to react to stock market volatility.
- How news bias can skew and misrepresent the severity of stock market changes.
- Why you should always pay attention to the percentage rather than the points a market falls.
- Why those with diversified portfolios don’t have to worry as much about news of US stocks.
- How to look at long term changes rather than current volatility for information.
- Why our human nature gets in the way of wise investing practices and how we can change that.
Ideas Worth Sharing:
[bctt tweet=”The relevant message is, well, what percentage did markets fall by? – @DanCuprill” username=”DanCuprill”]
[bctt tweet=”Within any trading day, 95% of the time you’re going to get movement +4% and -4%. I mean, that is the norm. – @DanCuprill” username=”DanCuprill”]
[bctt tweet=”There are lots of studies that show that stock markets actually do better in years of recession. – @DanCuprill” username=”DanCuprill”]
Resources In Today’s Episode:
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