ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Avoid investing solely in individual stocks
|
|
|
Sell your stocks when the market is going down
|
|
|
Hold onto your stocks, and don’t sell them even when the market goes down.
|
|
|
Buy when the price is low.
|
Detailed explanation-1: -Resist any urge to sell stocks Selling stocks in a panic is the worst thing you could do after a stock market crash. Successful investing is about buying low and selling high. When you sell after a crash, you do just the opposite.
Detailed explanation-2: -Ideally, you want to create a balanced portfolio while keeping costs down. Most investors lean on mutual funds, index funds and exchange-traded funds to do that. Rather than betting on any one company stock, these funds pool multiple stocks together, balancing out the inevitable losers and winners.
Detailed explanation-3: -While it’s tempting to dump stocks when the market is down, experts say that’s usually a bad move for a typical retirement saver. Stocks usually deliver better returns over long timespans than other types of assets, despite being vulnerable to downturns like the current one.
Detailed explanation-4: -Growth investing. Growth investing focuses on selecting companies which are expected to grow at an above-average rate in the long term, even if the share price appears high. Value investing. Quality investing. Index investing. Buy and hold investing.