I think most people are shocked by the recent drop in the market. I think during these times it's good to understand that prices can drop for any number of reasons beyond fundamentals.
Currently we are seeing a lot of forced selling and triggering of stop-losses combined with a severe lack of buyers. What this does is drive prices rapidly lower due to low liquidity as funds seek to rid their shares at any price possible, in a sort of reverse-auction scenario where people keep bidding prices lower and lower on the same share until a buyer finally decides to step in.
Personally I am buying these dips by setting up limit orders 5%, even 10% below the opening price of many stocks, and seeing them get triggered easily. Volatility is extreme and the best strategy a lowly retail investor can take in this scenario is simply to continue being the buyer of last resort.
A good example of a move I've made personally was triggering 1000 shares of NLY at $4.11 during the 2020 march crash, and selling at over $6 only a few days later. The dip was caused by a UBS fund getting liquidated – but I didn't know that at the time and was simply being a buyer of last resort.
There are a lot of people getting margin called and funds needing liquidity right now, and if you have the cash you should be buying. Similarly, if you're holding shares and don't need liquidity, don't sell at the same time as people who are desperately seeking liquidity.
These are just my thoughts and not financial advice.
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