5 Tips to survive a volatile stock market

Beyond the #1 rule — Don’t panic!

The stock market has been a little bit of a roller coaster lately. After a record 2020, despite the pandemic, many of us entered 2021 with a euphoric feeling of riding the market high. Because if 2020 showed us that the stock market can reach crazy highs in the midst of a pandemic, then it must mean that it can also weather ANY storm that comes its way.

2020 was a record year for the number of retail investors. According to the NASDAQ, retail investors now account for 1/5th of all of the U.S. stock market’s trading volume and this continues to rise.

But alas, 2021 has had a bit of a rocky start, especially for market darling growth stocks, like Tesla.

For new investors, that’s when the panic sets in. The stock market and economy, in general, are cyclical. What goes up, must come down. These movements are not unexpected, nor are they new. As new information or new players enter the market, the stock market moves in either direction.

We can refer to historical events. But even recently, there have been events that have shaken the stock market. This often scares off investors. But soon enough, they reenter, and money flows back into the market.