Question

What steps can you take to prevent yourself from being affected by a market correction? Explain.

Answer 1

Nobody like losing money. Market correction is something that no one can forecast. To protect ourselves from market correction, here are some ways you can take:

1.   Avoid listening to financial analysts. Ignore the predictions.

2.   Study the kind of markets you put your money into. Understanding how they work can help you a lot.

3.   Be ready to risk.

4.   Avoid being impulsive on your decisions.

5.   Think about the risks and the probability of a potential return; from there you can decide what you need to do.