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Tips On Surviving The Fall In Stock Markets
http://setbanking.com/articles/10892/1/Tips-On-Surviving-The-Fall-In-Stock-Markets/Page1.html
Amit Kheterpal
Amit is an investor on the stock markets who learned using the stock markets for beginners guide and helps people on stock market investing fundamentals for beginners. 
By Amit Kheterpal
Published on 10/26/2008
 
We all love it when the stock markets are rising and the bull run is there. You make money and then suddenly the markets start to fall and come in the grip of bears.

We all love it when the stock markets are rising and the bull run is there. You make money and then suddenly the markets start to fall and come in the grip of bears.

It is in that falling market that you need to know ways and methods to survive and also if you can get some benefits based on the low prices as well as the low price to earnings ratio.

The golden rule is to sell when the market is high and make some nice amount of cash. It is here that most people go wrong in the sense that they become greedy seeing the amount of money they are making and start buying more stocks at high prices and are stuck with those stocks when the markets are falling and the stocks prices start tumbling.

The advice from the stock market guru Warren Buffett is that you should get greedy when everybody is not greedy about the stocks and stay ways from the market when everyone is getting greedy. In simple terms that mean that buy low and sell high.

Most of the common people on the street get stuck with the high priced stocks but the bets part is that you can still make money on those in the longer run. You should make sure that you pick up stocks which have low prices and you always wanted to buy. That way the average price at which bought the stock would now to be very less. The trick is to keep on accumulating the stock at low prices and when the markets rise which they eventually do you will make more money.

This strategy will work only if you do not panic and try to build out a portfolio by picking up good company stocks at low prices.

The other strategy is to park your cash in the bank and buy only when the market ha bottomed out. That means that you buy particular stock only when you think it has reached its lowest point or is so low that it is not a justified prices based on the fundamental analysis of the stock.

A lot of brokerages now offer systematic investing in stocks so the other alternative is to pick one of two stocks which you can invest in on a regular basis and then the price becomes immaterial because you will always be getting the average price.

Apart from this the really passive ones can just wait and watch till the time the stock market picks up and you either make profits or cut your losses to a bare minimum.