Many investors lose money during stock market downturns as a result of sheer impulsiveness.

While it's easy to panic when your portfolio value takes a hit, remember that stock market crashes are often TEMPORARY.

Don't sell investments unless you absolutely need the cash

You only lose money in stocks when you sell off investments for less than you paid for them.

There's really no reason to unload investments unless you desperately need the cash

and you can avoid that scenario by amassing a solid emergency fund ahead of time.

Use spare cash to buy discounted stocks

When stock values decline, investors have an opportunity to buy up quality stocks on the cheap.

But don't touch your emergency fund during a downturn to buy discounted stocks.

That cash should be there to cover unplanned expenses or a period of unemployment

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