It’s a question that would only take place in the age of social media, but it still fits: could a tweet really wipe out your investment portfolio? The truth is that the answer is actually more yes than no. The current news today is that the Associated Press’s Twitter account was taken over by hackers, who made a false tweet that President Barack Obama was injured due to two explosions in the White House. Even though finance analysts follow current events, it’s safe to say that such a dramatic piece of news would cause investor panic.
We were confirmed correct as the DJIA (Dow Jones Industrial Average) dropped 143 points rapidly. This was a major drop and it caused a lot of problems for many investors who were not expecting part of their portfolio to take that type of beating.
This opens up the doors for a lot of terrible questions to be asked. Are your savings really safe in the market? For the most part — yes. This isn’t something that happens every day. If you are actively trading, you may want to return to looking at your stop loss break points. This will help you back out of unprofitable trades before you lose more money than you expect.
On most share dealing platforms, you can change these orders as you would like. It’s all about preserving your capital to keep trading.
Twitter’s representatives have indicated that they will need to do a lot more in terms of raising security, but this isn’t anything for people to panic over. It’s a classic corporate answer, but what else can be said? If you start worrying about every type of security breach that could happen and all of the phishing attacks as well, you’re never going to make consistent money. Most traders realize that the market can be fickle. Staying long while everyone else is panicking can leave you with some solid profits to enjoy.
Don’t worry about the losses — worry about the profits. Even though this was a major drop, it’s still quite possible to have a nice net gain for the year. You have to make sure that you don’t lose your faith in investing, at the end of the day. Why not look into it more on your side? There are plenty of other investments to make if you’re really trying to come out ahead in the long run. Don’t just stick your money in the bank and hope for the best. Know that you deserve a lot more than that. Good luck!