Watching an impact of a negative open when the market opens to a frenzy of selling can be massively nerve wracking.
If you are someone who dabbles in day trading or swing trading, you are going to be glued to your screen, watching your portfolio get whisker whipped from 9:30 to 4.
If you are like me and you are investing with the long term in mind, the best way to handle these morning drops is to ignore them altogether. You are investing for the long term. A day will not make you. A day will not break you.
As long as you are not holding questionable inverse ETNs, you’re going to be alright. Refer to my guide on proper portfolio allocations to make sure that you are not situated too hard in high beta stocks like small caps.
Make sure you have an adequate hedge in place. Something along the lines of treasuries or utilities can soften the blow of a shock hard open.
Don’t let an emotional response cause you to fire sell your entire portfolio. Remember: it’s not about timing the market. It’s about time in the market.