Ever wonder what are the reactions of various people that are transacting in the stock market today?
Corrections and consolidation are the most feared days by people who have just stepped in a new purchase because such market trend affects nearly all stocks. Thus it seems that they entered the market at a high price; if they could have waited a little longer they could have bought the shares at a lower price.
But again we all knew that the stock market is a very volatile place to place money. One day prices could be up the next will be down; but why do we invest in it even though we knew of such?
For newbies in the stock market correction is the best time to enter(though as many will say there are no such thing as best time to enter the stock market thus anytime is the best time). A little more and prices will near their bottom prices: buyer's time as we say.
That is why it is important to leave some free cash. When time like this come one must pocket gains and for stocks that have potential growth in the next months but dragged by the current situation it is best to cost average but up to some extent, you can't lose further money by keeping on putting money on a stock when you know its price wont be recovering soon. Just wait for its bottom price and buy a considerable amount so that you can lower your average cost to catch up when its price rises.
Again nobody can accurately predict what is to happen in the stock market, but with wise guidance and decisions you can even make money out of the bad and rainy days of the market.