Rookie stock investors call it quits after portfolio values crashed

It's official: the stock market is in a correction.

For the last few weeks, investors have been on edge as the stock market has taken a nosedive. The Dow Jones Industrial Average has lost more than 1,000 points, and the S&P 500 is down more than 10 percent from its all-time high.

Many rookie investors who jumped into the market during the bull run of the last few years are now facing big losses. And some of them are throwing in the towel.

"I'm done," said one young investor who spoke to NBC News on the condition of anonymity. "I'm getting out while I still have some money left."

This investor is not alone. A recent survey by E*TRADE found that one in five millennials say they would "definitely or probably" sell all of their stocks if the market keeps falling.

For many young investors, the stock market crash is a rude awakening. They're realizing that investing is not a get-rich-quick scheme. And they're learning that you can lose money in the stock market, even if you're investing in blue-chip companies like Apple and Amazon.

"It's been a tough few weeks for stocks, and rookie investors are feeling the pain," said NerdWallet investing expert Tim Chen. "Many of them are realizing that investing is a long-term game, and they're not prepared to ride out the ups and downs of the market."

If you're a rookie investor who is thinking about quitting, here are three things to consider before you make a final decision:

1. Have a plan

Before you sell all of your stocks, take a step back and evaluate your overall financial situation. Are you investing for the long term or are you trying to make a quick profit?

If you're investing for the long term, then you shouldn't let a short-term market downturn scare you out of the market. Remember, the stock market has always recovered from previous crashes and corrections.

"If you're in it for the long haul, then don't let a little volatility scare you off," said Chen. "The best time to invest is when there's blood in the streets."

2. Consider your losses

If you're selling your stocks because you're worried about further losses, then you need to consider the tax implications of your decision.

If you sell your stocks for a profit, you'll owe capital gains taxes on your gains. But if you sell your stocks at a loss, you can use those losses to offset other capital gains. You can also use up to $3,000 of your losses to offset ordinary income.

"If you're selling your stocks because you're worried about further losses, then you need to consider the tax implications of your decision," said Chen.

3. Stay diversified

One of the biggest mistakes that rookie investors make is putting all of their eggs in one basket. If you have all of your money invested in stocks, then you're taking on too much risk.

Instead, you should diversify your portfolio by investing in a mix of stocks, bonds, and cash. That way, if the stock market crashes, you'll still have some money invested in other asset classes that will hold their value.

"Don't put all of your eggs in one basket," said Chen. "Investing is all about diversification and risk management."