Diversify: The more diverse an investor’s portfolio, the less hard they will be hit by a decline in any one area. A crash in the real estate market, for example, could disable people who invest solely in real estate, but if those investments are balanced by other types, a crash isn’t as dire of a situation.
Focus on Short and Immediate: When the market is predicted to take a turn, it can be wise to invest in things that will mature relatively quickly.
There is a chance the investments will come due while the market is still good, and even if they don’t, investors won’t be locked in for long periods of a down market.
Don’t Rely on Past Results: All investors know that past results don’t necessarily dictate future success. Even if analysts are predicting that a certain stock will do well, things can still come up that cause the stock to crumble.
Because of this, good investors know to look at a number of factors when making decisions about what to do with their money, and they look at more than just one variable about a stock or investment.
Don’t be Reactive: Instead of being reactive to the market and simply following trends, look for patterns of companies on the rise and be proactive.
Take it in Stride: Even if a difficult market is around the corner, good investors realize that the markets by nature ebb and flow.
Some times are better and more profitable than others, but the bad times never last forever—the recent global recession is proof of that.