Asked by Anonymous

When the stock market crashes, is it better to sell stocks or buy more?

0
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (6)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
  • Thanh Dat
    Thanh Dat
    Level 3. Wonderkid
    Answered 4w ago

    Hi members,

    If the stock market crashes, we will never know when will it be the lower points before we buy. What happens when the moments we brought it..it continues to drop. That's the worst case scenario. Last week I brought 1000 koufu shares at 0.735. At this current time koufu was sitting at 0.775. It will be kind of scary if it turn out to be the other way. This coming May koufu is paying a dividend of 0.012.

    Comments (0)
    0
    0
    Share this
  • Richard Woon Tian Jun
    Richard Woon Tian Jun
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered 4w ago

    When the market crashes, assuming you aren't exactly holding on to any stocks per se, it is a good time to buy into all the undervalued stocks that investors panic sold out of. A stock market crash usually is due to a negative spiralling cycle of panic selling and self fulfilling prophecy, so usually the bottom of the stock market will allow you to reap alot of gains IF you are able to pick out the right stocks that will rebound back. These stocks are firms that show - strong fundamentals, good management and guidance, sustainable business model, strong outlook towards growth and expansion.

    Recessions are bound to happen. It is those that can tough out the rough ride that emerge the greatest victors.

    Comments (0)
    0
    0
    Share this
  • Isaac Chan
    Isaac Chan, Business at NUS
    Top Contributor

    Top Contributor (Mar)

    Level 7. Grand Master
    Answered on 12 Mar 2019

    I guess you can both sell and buy stocks, but the real question would probably be which one to buy and sell.

    When the market crashes, it gives you an opportunity to buy stocks more cheaply. The negative sentiment cause people to believe that a stock is less valuable than it actually is. So when the market corrects or recovers, you can make a profit out of selling it.

    On the other hand, some stocks could have been overvalued for a long time and the market may be correcting this overvaluation, so it may not make much of a sense to buy them straight.

    Comments (0)
    0
    0
    Share this
  • Yong Kah Hwee
    Yong Kah Hwee
    Level 6. Master
    Answered on 12 Mar 2019

    Would you buy, say, clothes at a discount or when they are at their highest price?

    Same thing for stocks, it is better to buy more when they are on 'discount'. Make sure you do your own due diligence before investing, and not just invest in any company that is on discount.

    Comments (0)
    0
    0
    Share this
  • Terence Tan
    Terence Tan, Finance at Singapore Management University
    Level 3. Wonderkid
    Answered on 12 Mar 2019

    If your investment thesis remains the same and the company is still on track, then buy more.

    But then, if stock market crashes, then you sell, isn't it related to buy high sell low?

    Comments (0)
    0
    0
    Share this
  • Nicholes Wong
    Nicholes Wong, Diploma in Business Management at Nanyang Polytechnic
    Top Contributor

    Top Contributor (Mar)

    Level 6. Master
    Answered on 12 Mar 2019

    It is better to buy more since the stocks are getting cheaper. Unless you can sell your stocks right before it crash, you should not sell them. Dont buy everything when it starts dropping though. Like if you have a warchest for market crash, use 50% if it drops by 50%, use another 25% if it drop to 60%.

    Comments (0)
    0
    0
    Share this