A: They have to decide their investing timeframe. If they're a long-term investor, maybe they want to start slowly purchasing shares as stock prices are falling to places we haven't seen in years. Putting a little bit of money to work each month as the prices go down could allow them to catch some of these great opportunities.
As a [short-term] trader though— focused on bringing in regular income—they've got to up their game in terms of strategy. Short-selling so that they can make money on the way down, and learning how to use options trading so that they can buy puts or sell verticals.
Also, if someone is not familiar with more advanced techniques, I believe this is a good time for them to build up their cash and potentially sit on the sidelines until the market stops falling. If the market falls into recession, this is not a good time to buy the dips and just hope for the market to rebound quickly.
This article was provided by Bloomberg News.