Question

Which of the following is NOT a recommended strategy when investing in stocks?

a) Avoid investing solely in individual stocks
b) Sell your stocks when the market is going down
c) Hold onto your stocks, and don't sell them even when the market goes down.
d) Buy when the price is low.

Answer 1

The answer to this question is b) Sell your stocks when the market is going down. This is not a recommended strategy when investing in stocks because it goes against the principle of buying low and selling high. Therefore, the correct option is

Step-by-step explanation:

The answer to this question is b) Sell your stocks when the market is going down. This is not a recommended strategy when investing in stocks because it goes against the principle of buying low and selling high. Selling stocks when the market is going down could result in selling at a loss.

Instead, it is advisable to hold onto your stocks, even when the market goes down, and wait for it to recover before considering selling. Diversification and buying when the price is low are recommended strategies when investing in stocks.