The volatility of stocks due to the recent Russia-Ukraine crisis is quite surprising and often worries some investors. This is because the price of the JCI (Joint Stock Price Index) has experienced a decline and even many have done panic selling until they are in the red trading zone.
Even though it is slowly rising again and starting to strengthen, you need to understand this kind of stock JCI volatility, it happens often. For novice investors, sometimes they are panicked and confused about what to do. Well, to help you get around this, there are various ways you can do it.
Want to know what it is? Read until the end of the information through this article, yes!
Keep Trying Calm
Russia's recent invasion of Ukraine has had an impact on the economy and the stock market. The volatility of stock prices often worries some investors.
But actually the fluctuations in the JCI are actually a natural thing to happen, you know. To overcome this, try to stay calm and relaxed. This method is done so that you can think and analyze what the next steps should be.
By enriching your knowledge about stocks, it will also help you to be calmer. Therefore, in addition to investing your money, you must also explore the stock itself, yes!
Try Seeing Opportunities
For short-term or long-term investors, the JCI turmoil that is happening can actually be a good opportunity to launch their actions. The action here is nothing but analyzing and making decisions about which issuers or companies to sell or buy shares in.
Quoted from Barron's, investors can do diversification across sectors or assets when there is turmoil such as the crisis between Russia and Ukraine now. This method can be tried as part of a strategy to reduce the increased risk of loss in stock investments. Of course, careful analysis and consideration must be carried out before doing it, yes.
To achieve this, yes, you need to go back to the first point. That is, you can enrich your knowledge about stocks, practice your movement analysis skills, and use measured capital, aka not until all your funds run out.
Learn Stock Movement
To get maximum stock returns in the future, you are encouraged to be critical of price movements in this stock market. In addition, understanding when shares will be sold or bought is also the basic capital as an investor.
Therefore, when the JCI price volatility occurs, you are also required to be able to study stock movements from time to time. This method is done so that you can decide which step is the best for each stock in your portfolio.
Understanding the Risks
Deciding to invest in stocks, of course, will have its own risks. Starting from the smallest to the largest, every investor must be ready to face it at any time. The same is true when the JCI price volatility occurred due to the recent crisis in Russia and Ukraine.
When you understand the risks of buying shares, it is hoped that it will help you in deciding what steps to take when the JCI is experiencing ups and downs. In addition, a strategy so as not to experience greater losses is also needed by an investor at times like this.
Therefore, every trader or someone who sells and buys shares in a short time is expected to have a stop loss limit. Namely a term to limit the losses experienced, either when buying or selling shares.
Focus Save For Long Term
To get around the JCI upheaval that recently happened, one way is to save for the long term. Especially for those of you who are still beginners in investing in stocks. Quoted from Investopedia, research shows that stock market returns often fluctuate in the short term. On the other hand, stocks actually outperformed almost in the long term.
Therefore as a consideration, stay focused on saving it in the long term. This method is also expected to help you to build the right stock portfolio and more and more from time to time.
But make sure to be careful in choosing the issuer where you want to invest!