Why It's So Important to Keep Investing When Stocks Are Down.

​Seeing red in your BO account is scary. But it doesn't mean you should stop contributing money. In fact, it's arguably extra important to ignore the urge to sell and keep contributing to your investments when the markets are on a downtrend. Instead of panicking at the negative number investors see on their statements, they need to remind themselves of the big picture.

Bear the following in mind as you consider what investing moves to make when the markets are on a downtrend:
 
You're not actually losing money:
It might feel like you're losing money when the balance in your BO account is shrinking, but until you sell, you're not actually saying goodbye to those hard-earned Taka. Keep in mind that being in the red is only an “on-paper'' loss on your statement or trading app.
 
It's a buying opportunity:
Market downturns can be scary — but they also mean financial assets like stocks are on sale. You are essentially buying in at discount prices, allowing the future growth potential of those investments to be even higher than what it once was.
 
You can't time the market:
Because you can't know when markets will recover, you risk missing out on a comeback if you stop contributing to your investment accounts. And the stock market's best days tend to happen right around its worst days.
 
Diversification is key:
In addition to sticking with your long-term plan, having a diversified portfolio can help spread out your risk. Diversification refers to having a range of investments in your portfolio that include those of different asset classes, like stocks and bonds, and sectors, like technology and manufacturing.

You also want to make sure you're invested in companies of different sizes, including large companies you've likely heard of and smaller companies not on your radar. If your investments are diversified, when one area of your portfolio suffers, another may hold steady or even do well.
 
When should you stop contributing to investments?
Investing decisions are personal and should be based on your financial situation, goals and risk tolerance. If you're running into financial problems or cash flow issues, it might be time to stop or pause the contributions.
 
You essentially want to make sure you have a positive cash flow stream, as well an emergency fund in liquid, secure, bank accounts, with the leftover Taka potentially going towards your investments. Financial advisors tend to recommend saving up an emergency fund that could cover at least six months of your expenses should you face something unexpected, like losing your job or a big health-related cost.