Veterans and
long term investors normally are not troubled by any fluctuations. They are
capable of a 'seen it all' attitude. This is because they would have
already laid their plan in an event of crash and also factors in volatility
and crashes prior to the situation. However newcomers and especially those
who are just there for some fast bucks are taken by surprise initially and
then if the crash is severe, gripped by panic.In a way it is
good to see some serious downtrend early on in the market so that you
experience the dark side of the market. That saves you some sweating later
on after you have committed more energy and money in the market. Now the
important thing for anyone is, how to deal with it, what to do?
Volatility:
A certain amount of volatility is not unusual and part of normal market
phenomena. It is when it gets heavy and also during a free falling and long
crash, things get tougher and almost impossible to deal with.
Next :
Dealing with major crashes