Stock trading is one of the most uncertain ventures. In one occasion, the stock prices rise to their highest, and in the next minute, they fall to their lowest. If you are a less experienced investor, this uncertainty will end up exhausting your financial wells rather than generating a profit. Nevertheless, if you are already dispirited, don’t give up. Ted Bauman’s expert tips will help you safeguard your investment portfolio from an unexpected market crash.
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— Ted Bauman Guru (@TedBaumanGuru) September 18, 2018
1. Steer clear from the emotions of making a quick profit
In most cases, amateur stock traders will step into the stock market with the common impulse of making huge gains within a short time. However, Mr. Bauman, the renowned asset protection expert describes the impulse as a perfect breeding ground for huge losses.
Stock traders, who let the impulse overpower them, end up buying more stocks. Overbuying places them at high risk of making a huge loss, just in case the stock price falls to its lowest.
However, if the unanticipated crash in stocks catches you unaware, stay calm and wait until the stocks gain their intrinsic market value. Panicking will only make you sell the stocks at a huge loss. According to Ted Bauman, savvy investors should aim at making small but consistent profits. This tactic will shield you from the massive losses resulting from overtrading.
2. Diversify your investment
Diversifying your investment is another excellent way to protect your stock investment from an unexpected market crash. For instance, Ted Bauman encourages savvy investors to invest in stocks and bonds, rather than relying on stocks alone.
Why? Stocks are highly volatile. You can make enormous profits or massive losses within a short time. On the contrary, bonds are less risky. A bond’s value cannot drop by 50% in a night. Into the bargain, the monthly dividends from bonds would help you recover part of your stock losses.
Who is Ted Bauman?
Ted Bauman is a financial expert, with exceptional skills in financial management, asset protection, and low-risk investment. He delights in sharing well-researched financial insights to his readers. In addition to the experience, Bauman holds a postgraduate degree in economics.