Tip #12 - How NOT to handle a share market downturn
Every week we post a tip that we hope will help you become a successful share market investor.
Tip #12 — How NOT to handle a share market downturn
First, dither around for some considerable time trying to decide if the price falls are short-term and will quickly bounce back or the start of a serious price slide. Second, once it is clear that this is serious, sell up after most of the damage has been done and take a bath. Third, watch the market recover while you try to decide if this is a minor price spike or an ongoing recovery. Finally, once it is clear it is a sustained recovery and you have missed most of the gains, reinvest your remaining funds and wait for the next price fall.
This information is not a recommendation nor a statement of opinion. You should consult an independent financial adviser before making any decisions with respect to your shares in relation to the information that is presented in this article.
FURTHER READING
Sharesight nominated for 2025 Wealth Tech Innovator of the Year
Sharesight has been chosen as a finalist in the 2025 Australian Wealth Management Awards, in the Wealth Tech Innovator of the Year category.
Prepare your annual accounts with our historical cost report
Sharesight's historical cost report is a powerful tool for investors who need to prepare annual accounts or financial statements with mark-to-market accounting.
Sharesight product updates – July 2025
This month's focus was on rolling out predictive income forecasting, as well as improved cash account syncing across different brokers and currencies.