Part 6/8:
Predicting the lowest point of a crash can be nearly impossible. Instead, consider using dollar-cost averaging (DCA) to invest regularly. This tactic allows you to buy more shares when prices are low and fewer when they are high, reducing the stress of timing the market.
3. Focus on Quality, Not Just Price
Market downturns can tempt investors to buy “cheap” stocks. However, not all companies recover from crashes; instead, target strong companies with solid fundamentals to increase chances of a rebound.
4. Diversify Your Portfolio
Concentrating investments in a single stock or sector can lead to risks if that sector suffers. By diversifying your portfolio across various industries and asset types, you can spread risk and cushion potential losses from specific downturns.