Over the recent weeks we have seen one of the most volatile markets in years.
Stocks plummet, correct upwards, only to plummet to even further levels the next day. Speculators are running rampant with opinions whether the market is under or overvalued.
As stated in The Stock Market Outsider, this period of correction would eventually come…and it has. And for those of you that have been following the strategy outlined in the book, you have used the recent volatility to flip multiple stocks/Put options for quick gains, and likely still hold some stocks that dipped in August and have not yet recovered.
Don’t be tempted to sell just because everyone else is selling. As long as you are holding positions in strong, undervalued companies – you will see a rise in the future. It may take a few days, weeks, or even months… however history always shows us that the stock market does recover.
This is the time when people make the most money in stocks. The prosperous ones are those that invested wisely and kept their emotions in check. The losers are those that bought into the hype and were unlucky enough to be the last ones holding the overvalued bag when the market corrected itself.
Keep a cool head, continue strategically investing in the market if you have free funds available, and watch as the fools kick themselves later on for buying overvalued companies and selling for a loss.