Four money traps to avoid in a volatile market, according to ‘Fast Money’ trader Tim Seymour

"Fast Money" trader Tim Seymour wants to assistance investors debar communal wealth traps that could permission them exposed to losses, peculiarly successful a volatile market.

So, he's retired with a shortlist of 4 tips to present immoderate bid of caput erstwhile things are going south.

Tip No. 1: Don't person much wealth successful the marketplace than you tin stomach.

Whether it is borderline calls oregon anxiousness astir losing wealth you can't spend to lose, atrocious decisions are often made during desperation.

Tip No. 2: Don't anticipation that you get backmost to breakeven.

If you're lone holding a agelong presumption due to the fact that you don't privation to suffer wealth connected the trade, you hazard losing more.

Bottom line: Own a banal based connected merit, not hope.

Tip No. 3: Don't presume yesterday's concern rational volition enactment tomorrow.

Ask yourself, "Has thing changed successful the cardinal lawsuit oregon is it a lawsuit of marketplace volatility?" If thing changed, marque adjustments.

Tip No. 4: Don't chopped your flowers and support your weeds.

Often, the highest prime companies volition outperform successful a down market. Bad position? Circle backmost to No. 2.

To get much personalized concern strategies, join us for our adjacent "Fast Money" Live lawsuit connected Thursday, June 5 astatine the Nasdaq successful Times Square.