Investing in the stock market means that one needs to be meticulous about knowing exactly when to sell their stocks. For instance, during the substantial stock market crash that resulted in 2008, there were many opportunities for both sellers and buyers to capitalize on both the current downfall and the future uprising of the stock market. Another prime example is how many people choose to sell their stocks during the holiday season which may not be the best time to do so. Having the perfect understanding of when to sell and when to stay put is imperative in successful trading.
- The big drop in 2008 was a boom for many traders despite the financial losses of 2009. Volatility was at a peak in 2008 even till the year end.
- When there are divergences in the market such as prices rising and volatility rising, wise traders will take a pause and allow the correlations to be re-established.
- Last week, the markets rose sharply which was the first weekly rise in a month. This has taken a long time to happen.
“Even during the global financial crisis in 2009, there were huge bargains to be had (as long as you didn’t believe the world was coming to an end).”