No one wakes up in the morning hoping to hear that their stocks are crashing. It’s a dreadful feeling, especially if you are unemployed or need money for food or bills. These things happen, but there is something you can do about it.
Saxo Bank Netherlands can help you get through market crashes.
If your stocks are crashing, the best thing to do is hold. As long as you have not sold any of your investments yet, then continuing to hold onto them will give you wiggle room before they crash all the way down. Sure, it may take a few months for them to recover back to pre-crash levels, but holding through tough times like these will ensure that they will still have increased value when they do recover.
What if You Can’t Afford to Hold?
If you absolutely need the money and selling your stocks is a must, then wait until they hit their lowest point before selling. This way, you will get a more significant return once the stock price has recovered.
That being said, if your stocks crash and you cannot hold onto them for any length of time at all (none), then you have to sell. Go ahead and sell some of your investments so that you are not faced with an empty portfolio but keep some if you can in case they rebound themselves.
If You Can Still Hold On
Before selling any of your investments, consider taking any profits you have right now. This way, even if your stock takes months to rebound, you can still make money off of it rather than lose everything once it does recover back to pre-crash levels. This will also help offset the sinking feeling you are experiencing right now because even though things are bleak, there is still money to be made while it is sinking.
What if the Stock Price Does not Recover?
If this happens, don’t panic. It’s a bump in the road, and one day it will rebound just like all others before it did. Take some time to recollect yourself and then look back at what caused the crash or what will happen next with the company. If everything looks stable enough, consider buying more stock when they hit their lowest point so that when they rebound, you can make even more money than before rather than simply trying to break even.
If the stock does not recover and starts affecting other areas of your life (e.g., you cannot afford food or shelter due to huge amounts of debt), then liquidate your investments into cash that you can use for real-life necessities such as food and shelter. You can always start investing again once you get back on your feet if desired, but sometimes other things come first (i.e., food).
What If Your Stock Crashes For Non-Market Related Reasons?
Suppose your stocks are crashing because of something different than market conditions (e.g., company-specific issues). In that case, there are other actions to take to help the situation before it gets even worse. This may include:
- Contacting the board of directors directly and asking them what their plans are regarding fixing this problem at hand to return to increasing stock price levels. If you’re lucky enough, they might tell you exactly what they plan on doing without needing much convincing or money changing hands first.
- Search for people who hold large amounts of stock in the company you are invested in so that they can get together to hold a shareholders meeting. This way, if one person started it, only ten other people would have needed to show up for this meeting, so it is not all that hard to find these people.
- Suppose enough shareholders agree that something must be done about the current way things are being handled by upper management or board of directors. In that case, they can hire an outsider who can come in and take over the job for them until everything starts going back up again. Once someone has been hired, quickly start buying stocks off their website since it usually goes down when new leadership takes over because everyone sells, thinking things will remain down forever under this new rule.