Turning Market Crashes into Opportunities! A Complete Guide to Personal Investment Rules You Can Start Today

"My heart skips a beat when I hear that stock prices have plummeted..." "I'm too scared to see my assets shrinking, so I can't even open the app." --Have you ever felt that way?

I was the same way when I first started investing. However, by adopting a certain mindset and set of rules, market crashes changed from something "scary" to a "delicious opportunity."

In this article, I will share a "Complete Guide to Personal Investment Rules for Turning Market Crashes into Opportunities" that even beginners can follow.

Conclusion: A market crash is an "opportunity to buy at a discount"

Successful investors say this: "When everyone else is afraid, that is the time to buy."

A market crash is like a clearance sale. If you pick up stocks wisely, it will lead to significant returns in a few years.

But the key is to "act based on rules, not emotions." If you can do this, you will be able to move to "buy" without hesitation even during a crash.

Chapter 1: Why is a market crash a "buying opportunity"? [Investment Strategy in the Rakuten Economic Zone]

1. History teaches us that "stock prices recover even after they fall"

Lehman Shock (2008) -> Recovered in 5 years, Corona Shock (2020) -> Recovered in 6 months, IT Bubble Burst (2000) -> Recovered in about 7 years

The one thing all past market crashes have in common is the fact that "they recover if you give them time." Many people have increased their assets by holding long-term rather than being swayed by short-term declines.

2. Market crashes are a treasure trove of "undervalued blue-chip stocks"

The basic principle of investing is to "buy low and sell high." A market crash is the perfect opportunity to get stocks of good companies at a "sale price." Example: Usually 1,000 yen per share -> 700 yen after a crash = leads to large unrealized gains after recovery.

3. Those who can go against the crowd are the ones who increase their assets

"Be fearful when others are greedy, and be greedy when others are fearful." This is a famous quote by investor Warren Buffett. Those who can calmly move to "buy" instead of selling during a crash are the future winners.

Chapter 2: "Personal Investment Rules" to stay calm even during a crash [Mindset for beginners]

1. Let go of emotions and buy based on rules

Humans have an instinct to avoid losses (Prospect Theory). That is why it is important to decide on "buying rules" in advance. Example: Buy 10,000 yen worth when it drops 10%, invest a fixed amount once a month, etc.

2. Look to the future: "How to develop a long-term perspective"

Instead of focusing on short-term price movements, judge based on whether the value will increase in 5 or 10 years. The habit of being conscious of corporate growth and the flow of the overall economy is the key to maintaining composure.

3. Rakuten Securities x Automation for Building Habits

Investing becomes easier when you leave it to a "system" rather than your own emotions.

• Rakuten Securities automatic investment settings

• Rakuten point investment (from 1,000 yen/month)

Chapter 3: Real Success Stories of "Buying When Prices Dropped" [Real-life Stories of Long-term Investing]

Six months later for those who "bought more" during the COVID-19 shock

In 2020, the S&P 500 fell by 34% and recovered within six months. Those who bought more during this time lowered their average acquisition cost and subsequently gained significant unrealized profits.

What happened to those who continued their installment investments?

During the 2008 Lehman Shock, a decline of over 50% occurred. Those who continued their installments lowered their average acquisition price, and their assets more than doubled during the recovery.

The market crash strategy of the world's greatest investor, Buffett

Buffett purchased large amounts of stock in major companies during the Lehman Shock. -> Goldman Sachs, GE, etc. -> He earned huge returns along with the recovery.

Chapter 4: 4 Steps to "Being Able to Buy Even During a Crash" [Rakuten Installment Techniques to Start Now]

Step 1: First, secure your emergency fund

To invest calmly even during a market crash, secure 3 to 6 months of living expenses in cash. Mental peace of mind leads to the "courage to buy."

Step 2: Decide on the "amount and timing to buy" in advance

To avoid being swayed by emotions, set rules for your investment actions beforehand. Example: "Buy in three installments if it drops by 20%," "Invest on the 10th of every month," etc. Rakuten Securities' price notification feature is also useful.

Step 3: Create a "buying habit," even if it's small

It is scary to move large amounts of money suddenly. -> Start by investing from 1,000 yen per month using Rakuten points -> By accumulating small "buying experiences," you will be able to act when the time comes.

Step 4: Cut off information and keep your cool

During a market crash, it's easy to get swayed by social media and the news. → Decide on specific times and media sources to check. → Protect your peace of mind by setting your own rules, such as only checking your portfolio once a month.

Summary: Those who can view a market crash as an opportunity are the ones who grow their assets.

Investing is a 'battle against your emotions.' However, with rules and systems in place, anyone can learn to act calmly.

📌 Actions you can take starting today

• Prepare an emergency fund

• Start investing with Rakuten points from as little as 1,000 yen per month

• Establish rules using iDeCo or automatic savings plans

• Maintain calm judgment by taking a break from social media

💬 How do you want to act when a market crash happens?
If you have any personal rules or experiences, please share them in the comments section.
Your voice might just be the hint someone else struggling with the same thing needs.✨

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