Cathie Wood: TESLA Just DESTROYED NVIDIA With This NEW Invention!

A market crash is among the worst times to sell your stocks. Instinctively, many people are conditioned to limit pain by stopping any activity that is causing pain. That encourages some investors to back away from a crashing stock market entirely to avoid any further losses.

Don't do that. It's an irrational, fear-based response that has the potential to completely sabotage your long-term performance.

If the market crashes, stocks very well might slide lower. It's hard to tell when the market has truly hit bottom. Once you accept that it's impossible to truly know what the future holds, it's important to think about probability and historical evidence. Some analysts talk about "asymmetric risk and reward," which refers to the relative balance of upside and downside potential. Crashes make stocks cheaper relative to companies' revenue, profits, cash flows, and dividends, resulting in a situation with lower downside risk and more upside potential for shareholders.

Selling stocks during a crash is a great way to transform temporary, unrealized losses into permanent, realized losses. It's a blatant violation of the "buy low, sell high" approach. You should stay the course when stocks get cheaper.

#stockmarketcrash #raydalio #cathiewood

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