Black Monday refers to Oct. That event marked the beginning of a global stock market decline, making Black Monday one of the most notorious days in financial history. While there are many theories that attempt to explain why the crash happened, most agree that mass panic caused the crash to escalate. Since Black Monday, a number of protective mechanisms have been built into the market to prevent panic selling , such as trading curbs and circuit breakers.

However, high-frequency trading HFT algorithms driven by super computers move massive volume in just milliseconds, which increases volatility.

This led to tighter price bands being installed, but the stock market has experienced several volatile moments since The rise of technology and online trading have introduced more risk into the market. Unless it is absolutely the end of the world, a market crash of any duration is temporary.

Black Monday Stock Market Crash: This Month in Business History (Business Reference Services, Library of Congress)

Many of the steepest market rallies have occurred immediately following a sudden crash. Stick With Your Strategy: A well-conceived, long-term investment strategy based on personal investment objectives should provide the confidence needed to stay cool while everyone else is panicking.

Stock Market Crash of - Facts & Summary - gyranasoreso.web.fc2.com

Investors who lack a strategy tend to let their emotions guide their decision-making. Knowing that market crashes are only temporary, it should be viewed as a moment of opportunity to buy stocks or funds. Market crashes are inevitable; have a shopping list prepared of stocks or funds that would be more attractive at lower prices, and buy while others are selling.

Turn Off the Noise: Over the long term, market crashes such as Black Monday show up as a small blip on the performance of a well-structured portfolio.

Black Monday () - Wikipedia

Short-term market events are impossible to predict, and they are soon forgotten. Long-term investors are better off turning off the noise of the media and the herd, and focusing on their long-term objectives.

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