[Summary]

The ranking of what not to do during a market crash is a theme that you should decide how to use according to your household finances, holding period, and risk tolerance, rather than just knowing it.

The ranking of what not to do during a market crash is a theme that you should decide how to use according to your household finances, holding period, and risk tolerance, rather than just knowing it.

In actual investing, the starting point is to check prices, performance, fees, taxes, and financial plans separately, rather than relying solely on rankings of what not to do in the event of a market crash.

In this article, we will organize a ranking of actions you should not take during a market crash, not as "knowledge" but as steps to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.

First of all, what you should not do during a market crash: Ranking of actions

When looking at the ranking of actions you should not take during a market crash, first determine what you want to judge. The information you need will change depending on whether you want to know the meaning, confirm before buying or selling, or review your current holdings.

Especially for beginners in investing, the easier the words are, the more they tend to take them as a conclusion. The ranking of actions that should not be taken during a market crash is not the only material used to make decisions. If you want to check it, it is more realistic to look at it in conjunction with fund management, holding period, and opposing materials.

Things to look at first in the ranking of actions you should not do during a market crash

If you want to look at a basic ranking of actions you should not take during a market crash, first of all, make a narrow premise. It is important not to mix up whether you are talking about the market as a whole, individual stocks, NISA or long-term funds.

Checking the following points will make things a lot easier.

Axis to checkWhat you should not do during a market crash
purposeWhat do you use to judge?
Time axisWhich is closer to short-term trading, long-term holding, or NISA?
basisWhich one is more important: price, business performance, interest rates, exchange rates, or psychology?
riskWhen things go the other way, where should you look again?
actionWill it lead to buying, selling, or doing nothing?

Points that can easily cause trouble in making decisions

When it comes to ranking what you shouldn't do during a market crash, it's not only when you don't have enough knowledge that you stumble. In fact, there are situations where we interpret something conveniently because we know a little bit about it.

  • Focus on one purpose before reading the ranking of actions you should not take during a market crash.
  • Check systems, products, market prices, and psychology separately
  • Decide first what to do when you see unfavorable material.
  • If you don't know, leave the option of not buying.

The important thing here is not to settle on a single correct answer based solely on the ranking of actions you should not take during a market crash. In investment, the meaning of the same material changes depending on the market, holding period, and amount of funds. When in doubt, prioritize confirmation over conclusion.

Checklist before buying and selling

Before using the ranking of actions you should not take during a market crash as a basis for making decisions, check at least these five things.

  1. Can you explain in one sentence the purpose of looking at the ranking of actions you should not take during a market crash?
  2. Have you confirmed one or more countermeasures or failure conditions?
  3. Are you investing your living funds or money that will be used soon?
  4. Have you decided in advance the criteria for cutting losses, taking profits, and continuing to hold stocks?
  5. Are you making judgments based only on social media or short headlines?

Checklists are simple, but they prevent you from adding reasons after making a decision. The purpose of checking the ranking of actions you should not take during a market crash is not to act faster, but to reduce unnecessary mistakes in judgment.

Summary

The ranking of actions you should not take during a market crash is a material for organizing your investment decisions. Even if you read it as a basic signal, your judgment will be inaccurate if you treat it as a stand-alone buy/sell signal.

The points to keep in mind are as follows.

  • See the ranking of actions you should not take during a market crash Decide your purpose first.
  • Do not mix time axis and amount of funds
  • Check not only good materials but also negative materials
  • When using NISA and long-term funds, consider how to handle losses
  • When in doubt, reduce your position or postpone it.

The more knowledge you have, the safer it seems, but in the market it can become dangerous if you use it incorrectly. It is realistic to use the ranking of actions you should not take during a market crash as a tool to help you pause before buying or selling, rather than as a guide to making hasty decisions.

Source/reference materials

This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.