The United States stock market took a sudden hit on December 4th, 2018 that made a lot of investors panic. Market analysts assumed that the drop might be caused by the global events that have been happening, but the full reason behind it cannot be understood as it is only the beginning. Many people fear that there will be repercussions in the economy after the trade negotiations that have been made with China. The state of the stock market has been uncertain since October when the prices in stock were lower than they had been in previous months. This makes 2018 a bad year for stock markets. Amateur investors and those people that are new to the stock market and how it works need to know that the drop on 4th of December was the result of chain reactions that happened on all levels of investments.
Professional investors, on the other hand, saw the drop as an indicator of economic slowdown and this affected how they interacted with the stocks. Applications and algorithms for investment saw the drop as well, and they reacted to their programming which caused a further descent in the stock market. With stocks continuing to fall a week later, the future of many is uncertain. Many of the uncertain individuals are turning to professional investors and markets analysts for answers on the right investments. While this may be a smart move what many fail to realize is that one cannot equate age and success in the business when it comes investing. The difference between professional and amateur investors is not the age but the strategy that they have in place. If age were a factor when it comes to the stock market, it would never have evolved, and it would be a bed for self-destruction.
The stock market fluctuates drastically from time to time, but the recent downfall presents a storm in what were clear waters. The best move for most investors would be to remain calm and let the storm move by. According to Sandy Chin, there are five ways that one can be mindful and practice level-headedness during a time like this. One is to research the history of the stocks; two is to get more opinions from other people, three is to invest in new stocks at the time, four is to be an investor with a college like a mindset and lastly is to not undervalue an individual investor’s power.