Corrections are generally temporary price declines interrupting an uptrend. Correction Vs. Crash.
A market crash is when the 10 per cent price drop occurs in just one day. Crashes can lead to a bear market. That's when the market falls another 10 per cent, for a total decline of 20 per cent or more.
Despite the inherently uncomfortable nature of watching an account balance drop by 10% or more, market corrections can be healthy for both the market and for investors.
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