Dealing with volatility

Dealing with volatility

when stock markets are constantly scaling upwards, everyone remain happy and confident. Problem is that it does not take the market very long to start scaling downwards. Often, the descent will be faster than the ascent. That's when all hell brake loose for the small retailer.

Veterans and long term investors normally are not troubled by any fluctuations. They are capable of a 'seen it all' attitude. This is because they would have already laid their plan in an event of crash and also factors in volatility and crashes prior to the situation. However newcomers and especially those who are just there for some fast bucks are taken by surprise initially and then if the crash is severe, gripped by panic.
In a way it is good to see some serious downtrend early on in the market so that you experience the dark side of the market. That saves you some sweating later on after you have committed more energy and money in the market. Now the important thing for anyone is, how to deal with it, what to do?

Volatility:

A certain amount of volatility is not unusual and part of normal market phenomena. It is when it gets heavy and also during a free falling and long crash, things get tougher and almost impossible to deal with.