What is a market correction and how should investors position against it?

As a result of my information and research, I would like to share my research with you on how to take action in case of market decline.

Market correction is a healthy and natural part of a market. It is generally observed when a stock, market or stock market declines by at least 10% from its peak value. These decreases usually occur as a result of excessive inflation, and after the decrease, there is usually a rise again.

How should investors position themselves against a market correction? Here are some recommendations:

1 Investing for the long term: Long-term investments may be suitable for investors who think that declines are temporary and the market will return to higher levels
2 Measuring and limiting risks: Investors should determine the amount they can take on risk and not exceed this amount.
3 Diversifying a portfolio: Spreading risk among different types of assets, such as stocks, bonds, real estate and commodities
4 Using stop loss orders: Stop loss orders are a type of order that automatically executes selling a security at a specific price level and can help limit potential losses
5 Hedging: Hedging, using financial instruments such as options or futures contracts, can help protect against market declines Being patient: It is important to be patient and not make impulsive decisions during market declines.
6 Following the market: Following the market is important for investors because it is necessary to understand market movements and predict future movements.
7 Applying trading strategies: Trading strategies help investors learn how to protect themselves from market declines.
8 Consult your financial advisors: Financial advisors can make suggestions for investors to measure and limit their risks, diversify their portfolios and protect themselves from declines.
9 Investing in defensive assets: Some assets, such as bonds and utility stocks, are considered defensive assets because they tend to perform relatively well during market downturns.
10 Diversification: It is also important to diversify your portfolio to reduce risk. Investing in different market segments or different types of assets, such as stocks, bonds, real estate and commodities, can help diversify your portfolio.

These recommendations provide a general perspective, and it is important for each investor to create a personalized strategy considering his or her own risk tolerance, investment goals, and financial situation. I think it's always a good idea to consider consulting a financial advisor when making investment decisions.

I would be glad if I could help even a little bit.