How to Survive Short Term Market Ups and Downs


It’s no secret that markets fluctuate. Every market has its ups and downs, and people lose and gain money all the time depending on these fluctuations.

So, how do you survive those short-term leaps and falls? While there’s certainly no definitive way to keep your money 100% safe in any market, there are some ways to ride out the storm and keep yourself from going under.

Here’s how to survive the short term market ups and downs, whether you’re in real estate, the stock market, or another market. These tips can help you navigate the tough decisions and keep your head in the game when things are looking down.

Awareness Is Key!

Achieving financial freedom means taking some risks. You took a risk when you invested your money in the market, but the risk can ultimately mean reward. The key to managing risk and navigating those pesky short-term ups and downs in the market is awareness. Predicting what the markets will do isn’t an exact science, and sometimes, even the experts are entirely wrong.

We’re not asking you to predict market trends, but rather to be aware of what’s going on in your market. Did you invest in the real estate market? Keep up to date with real estate news and the overall health of the market. What do interest rates look like? Are people buying homes? Is the market slated to take a hit later in the year? Knowledge is your best weapon against unexpected change.

Have A Plan

Of course, investing means nothing if you don’t have a plan. Even when the market begins to fluctuate, it’s crucial that you stick to your plan and keep your head in the game. You may want to act swiftly when the market takes a dive, but that’s not always the best thing to do. Sometimes, all you can do is ride the wave to the other side.

The key is to not panic when the markets fluctuate. Inexperienced investors and the average person are usually the first ones to panic when a market takes a minor dive. You have to understand that ups and downs are a part of any market, healthy or not, and nothing in investing is guaranteed.

Stick to your investment plan when things go awry. You know what your goals are, your risk tolerance, and what you’ve got on the line. Stick with the program, and if you feel you need to make significant changes, consult with an expert before you do anything.

Diversify Your Portfolio

You should never have all of your eggs in one basket, as they say, and that’s certainly true when it comes to investing. By diversifying your portfolio and investing in several markets, you’re effectively reducing your overall risk. When one market tanks, another could be booming. The important part is that you don’t have all of your money tied up in the market that’s tanking; otherwise, you’re in a for a not-so-exciting investment year.

Investments react differently to ups and downs, so diversifying is something of a necessity if you plan on building long-term wealth. The experts recommend diversifying your portfolio, even if you’re only saving for retirement. It never hurts to have more than one option at your disposal.

Maintain Discipline

This is probably the most important tip, but it’s also the most difficult part of investing. Watching your market(s) fluctuate can be terrifying, especially if you’ve invested quite a bit of money. Having the discipline to stand firm in the face of fluctuation can help you keep a level head and prevent you from making rash decisions.

Don’t let a dip in the market scare you out of it. Before you invest in any market, it’s a good idea to research the market’s past fluctuations, and consider any predictions for the future. Is the market looking good for the coming years? How did it perform in previous years? Does it drop frequently?

Don’t Be Afraid to Lose Money

You might lose money on your investments. That’s part of the risk of investing money. Your risk tolerance is just how much you’re willing to lose, and it’s a crucial part of riding out those market fluctuations. Entering the investment world with a crippling fear of losing money can hold you back from taking necessary risks, and without risk, you likely won’t achieve the financial freedom you’re looking for.

The Bottom Line

Markets will fluctuate, there’s simply no way around it. Knowing what to do when they fluctuate, maintaining your discipline, and understanding your risk tolerance can help you navigate ups and downs without panicking and making bad decisions. When in doubt, you can always talk to a financial planner or investment manager for advice or guidance. Don’t let minor fluctuations scare you off!

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