How Low Do You Think That The Stock Market Can Go To?

The stock market can go down to zero; this is possible at least theoretically. So there is no limit that you can set on how low the stock market can crash too. In the year 1929, the stock market went as low as 90%. Visit this website
Investors have a feeling that the stock market will rise but there are drops that form a part of this market too. And this could cause huge losses for everyone.
The bankruptcy of an individual stock
Suppose you have invested in to accompany that has gone bankrupt. This could cause you to lose 100% of the capital that you have invested in the stock. The common shareholders are the last to get their share back and in most cases, they get back nothing.
Bad days in the stock market
If there is one day that sees a big crash then this could raise panic among the investors. This could instill fear among investors and cause them to sell till the market falls to a great extent.
The market can fall indefinitely
A bear market could cause the market to fall a lot. The fall could last for months or even years. So if you were invested into the market during a stock market crash, in most probability you would have lost all your capital or at least a major part of the money invested into the market.
The market does recover
The market does recover after a major decline, but that takes time. The recovery to takes a number of years. You should know when to buy after the decline to be able to make money in the recovery phase.
Invest with caution
No one can tell with certainty when the stock market will crash. No one can even let you know till what price the stock market will fall too. If you have invested in shares then chances are that if the fundamentals of the company are bad then the company could declare bankruptcy and you may lose all our money. So as investors it is your duty to take care that you spot these crashes as early as you can and get out of your portfolio.
What can you do?
The stock market can go down to levels that you may have never imagined. If you have a stock in your portfolio then you should think of selling it as soon as you see that the stock has started to fall. It does not pay to be optimistic when the market around you is only falling.
Some of them would wait for the stock prices to crash and then keep waiting for years for the stock prices to get back to the buy price. In real value terms, this causes you to lose a lot of money.
Remember that the market can go down to zero, at least theoretically and thus to prevent your capital from being washed away; take care to place a stop loss on each trade. Whether you are an intraday, swing or a positional trader’ whether you are a trader or an investor, a stop loss is a must.