When I read a book a while back about investing, it asked a question: "If you completely stop working TODAY, how many days/weeks/months would you last?" At the time, my answer was zero. So I don't know what investment for beginners looks like.

 So I thought, how will I build my wealth to change that zero to days to weeks to months to years. I kept reading different books and articles to feel comfortable investing in the stock market. Eventually, I took my wife's $9000 and put it in stock. When I bought my first stock, I was nervous, but I felt confident that it was the best decision. It was nerve-racking for the first week, then I remember what I read in the "Unshakeable: Your Financial Freedom Playbook" that my father-in-law gave me.

I don't know if the timing was a coincidence, but I invested when the market was in a bear market during the COVID-19 pandemic back in 2020. With the stock market falling more than 20%, it created fear within the society to the point where people were selling their stocks to protect what was left of their money. So fortunately for me, I bought into the stocks market at really discounted prices and rode out the bear market. More to come.

Market Correction in Stocks

Before you go crazy about selling your stocks, take a deep breath in and out all your frustrations. You need to understand market correction before getting cold feet with the market. A market correction is when the market falls from its highest peak by 10%.

 Here is a fun fact market correction always happens, just like birthdays. This means you can always expect a market correction every year. So when the market correction does come, just stay the course and do not sell any of your stock. Disconnect yourself from social media, investing platforms, or turn off notifications to prevent yourself from selling any stocks during the market corrections. Do whatever it takes to avoid yourself from selling when it's down.

In fact, you actually should buy more stocks during a market correction or even better during a bear market. A bear market is when the market falls from its highest peak by 20%. Think like this, once the stock market falls either 10% or 20%, you should be considering buying more stocks because stocks are at a discounted rate. For example, you are more inclined to buy products with 20% off than purchase products at total retail price. The same thing applies to the stock market.

"The stock market is the only thing people prefer not to buy when it is on sale" - Unknown Author.

When can you predict market correction in stocks?

You can't predict market correction whatsoever. So if anyone tells you that they can, it's bull shit. In fact, the challenging part is to ignore any financial news or stock news during the market correction. Unfortunately, instead of informing or educating, the financial media's priority is to make money from its ads by creating soap opera storylines to capture investors' fear.

The market correction on average lasted 54 days. This means once the market correction happens, just ride it out, and it will pass through. The market will always bounce back up. I remember the feeling when I started with $9,000, and it fell to almost $6500. I wanted to sell my stocks to protect my left, and I remember Warren Buffet's number 2 rules.

1. Don't lose money.

2. Review number 1.

So I stopped checking my account for a while, and the next time I checked, it bounced back and more. You have to remember that this is a marathon, not a sprint.

Preventative Maintenance for Market Correction in stocks.

 There are different strategies you can apply to minimize the downfall of your stock portfolio. This strategy is used by many investors: diversify. Instead of putting all eggs in one basket, you put eggs in multiple baskets.

Having 15 unrelated stocks within your stock portfolio minimizes your overall risk. In other words, having different stocks reduces losing money overall. As a result, some of your stocks may be underperforming, while others will be overperforming to make up for the loss and potentially gain more value.

Taking diversifying one step further is diversifying your stock portfolio across asset class, stock exchange, and industries. This type of diversification allows the investor to not wholly rely on a single asset class or industry. But, again, remember rule number one, don't lose money.

Final Thoughts: Ride it out!

When the market correction happens, or it becomes a bear market in the stock market, the best thing you can do is ride it out.

Don'ts

• Sell when it's down.

• Listen to the finical news media.

• Put all your eggs in one basket.

Do's

• Ride it out.

• Disconnect yourself from anything related to financial media.

• Diversify your stock portfolio.

Until next time. Hold onto your precious stocks.

-DJ Everton-Lovell

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See yall next time.

Make sure you check out What is a good investment for beginners?

If you want to learn more, check out the books below:

"Unshakeable: Your Financial Freedom Playbook" by Tony Robbins.

"Money Master the Game: 7 Simple Steps to financial freedom" by Tony Robbins.

If you are ever curious about making money online, check this out.

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