Market Pullback: Opportunity or Threat?
When the market suddenly pulls back after a rally, some feel anxious while others see a golden opportunity. But how do you distinguish between a natural pullback and a deep correction?
Natural Pullback: This occurs when the market declines by 5-10% due to profit-taking or temporary news. It is often an opportunity to buy at better prices.
Deep Correction: If the decline exceeds 10-20%, it may indicate an economic problem or a change in market direction.
How to Benefit from a Pullback?
1. Don't act emotionally: Panic may lead you to sell at a loss.
2. Watch support levels: If prices stabilize at certain points, it may be the right time to buy.
3. Invest for the long term: Strong companies recover over time.
A pullback is not always bad; it can be a new launching pad #MarketPullback