Brought on by the recent activities in the world stock market, one being the 2nd worst trading day for the DJIA or the Dow Jones Industrial Average happened on July 26, 2007. Investors are expected to become quite scared of their stocks and it’s possible that they will entertain notions of selling.

But investors should remember that the stock market can have losing moments, but law of physics dictates that prices would eventually get back to normal and start increasing again. Remember that about a week before the losses suffered at the Dow Jones, it closes above the index price of 14,000 for only the first time in its history.

Fluctuations occurring in the stock market should not scare investors away; it’s a fact of life in the stock market. Remember that on average the movement of stocks in the stock market moves higher or increases. According to stock market analysts, the long tenure gain of a particular stock is about 10.8 percent every year.

As time goes by those different stocks will continue to go and move up and down. It’s almost impossible to foresee its highs and lows. If ever you decide to sell your stocks now, you might end up risking and missing the gains of future increases and not to mention you will end up paying additional fees just to re invest and trade again in the stock market.

Here is some possibilities if you remove your money right after a stock fall:

During the stock market plunge in September of 1998 when the DOW Jones fell at 7539.07, chances are if you sold your stocks for fear of continues stock price downfall you probably would have missed the opportunity of cashing out on the gains in your portfolio of 21 percent at the end of 1998.

During the infamous Stock market crash of October 1987 when the Dow plunges into 1738.74, selling your stocks that time meant losing the chance of earning and cashing on the 24.7 % gains in portfolio accumulated by the end of December 1988. If for example you have a total of $100,000 in portfolio stocks that means losing about almost the equivalent of $25,000.

Economists agrees that the right attitude would be to put your hard earned money into the market a bit at a time, consistently that will be the right way to earn money. Do not risk your money by gambling on wherever you might think the prices will end up next. Sit down tight, relax while you let the so called bulls and bear condition to ride it all out.

Selling your stocks when the market is in deep trouble is not the right path to protecting your interests and investments. A great awareness about your investments is needed, consult with your financial consultant and always be aware of the developments in the stock market. Don’t just sell stocks in panic situations. In the end the stock market will always find a way to bounce back.