Tips to Survive the Dow’s Wild Ride

Tips to Survive the Dow’s Wild Ride
News from Motley Fool:

Fortunes are made and lost in volatile markets. To help you avoid the latter, I’ve compiled some great recommendations on how to maintain your composure, develop an appropriate investing strategy, and apply that strategy. I’ve even included nine stocks I believe will both survive and prosper in the days and weeks ahead.

Maintain composure
In times like these, fear drives investors to sell stocks and buy seemingly safer alternatives like gold and bonds. As they do, stock prices go down and the price of alternatives up. The net result is that investors sell stocks at the bottom of the market and buy the seemingly safer alternatives at the top.

For this reason, Warren Buffett famously claimed that the most important quality for an investor is temperament, not intellect. To be successful, you need to stay calm and rational during the market’s boom and bust cycles and avoid falling prey to the market’s herd instincts.

You can soothe your tempera…………… continues on Motley Fool
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