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We all want to quickly recoup our losses; however, we must be careful to avoid the following "traps":

  • Value Trap - just because a stock is cheap, doesn't mean it's a great value.
  • Risk Trap - in a rush to make back losses, people are more willing to take outsize bets on stocks.
  • Paralysis Trap - recent events have left some too terrified to act.
  • Comfort Trap - when fearful people become prey to Wall Street products that make you feel good by promising you safety.
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