Forecasting A Market Recovery After A 10% (Or More) Correction by Gideon Vigderhous, PhD
Market declines can cause the powerful emotions of fear and greed to take over our decision-making abilities. When you notice that happening, try to think rationally.
When a market declines more than 10%, its reason enough for investors and traders to be concerned. Do you hold your positions and ride out the drop even if it gets worse, or do you exit your positions and reenter after the market has begun its road to recovery?