Whether it is the Federal Reserve or the Bank of Japan, there are many things that can be done during the gap period before interest rate hikes. It is a confirmed fact that in the short term, a sharp correction in US stocks on the asset side and the appreciation of interest rates in the Japanese yen on the debt side disrupted the trading model for many years before, causing a rebalance. If you want to take thisrebalanceTreating it as a crash definitely requires deeper insight.Back to ourselves, how do we respond in the face of a sudden market crash?
Never sell stocks when the market is already in a panic
Yesterday VIX $CBOE Volatility S&P 500 Index (.VIX.US)$ It is the 3rd highest in history, higher than 911. Under normal circumstances, it is normal for many people to be afraid and worried last night. The VIX Panic Index once rose 83% to 42.8.In the most frightening moment in history, the probability of buying and losing money is very smallLooking at this huge number of openings, those who are afraid must be selling in a hurry to escape their lives. The moment of greatest fear should have passed. Judging from historical experience, this position is too big at the bottom. I think VIX's long-form movies are a good thing.This means that there is more capital to buy and sell to redeem profits, and more capital to dare to sell more positions. So now that the market is in extreme panic, it is not a sign of selling; it is a time to enter the market.
How to deal with holding stocks?
Everyone knows, US stocksA sharp decline and a slow riseMany investors don't mess around with their positions, but they definitely don't feel comfortable when they suddenly lose a lot of money by holding positions. Then I recommend you use hedging...