Lessons from meltdowns

Investors, in particular retail investors, should be vigilant and not be carried away with market rumours or stocks in play due to the meteoric rise of a particular stock.

TIME and again, the local stock market experiences a major meltdown related to certain companies whose share prices plummet as they hit one limit-down after another.

The catastrophic nature of the selloff typically spreads to other stocks perceived to be manipulated or held up for the longest time, creating a contagion impact.