What SHOULD You Do When the Stock Market Crashes??

THIS is how you should prepare for a stock market crash. SUBSCRIBEto get INSTANT alerts when I post a new video outlining my penny stock trading techniques.*

Preparation is key. Too many people are fully invested when the stock market crashes, and they lose 5%, 10%, 20%, 30%, sometimes even 50%. I know the mutual fund industry would like s you to think that it's safer to be invested in a mutual fund BUT, if the stock market crashes as it has in the past, all the mutual funds get crushed too.

Be very careful with specific predictions. They usually don't come true. For me, I want to be prepared if and when there is a crash. And so, I'm staying fully liquid. I'm staying sitting in cash. That's how I like to trade stocks.

We've been in this, yes, decade-long bull market, but we've also been in a century-long overarching bull market. So it's never really paid to be bearish long term on the U.S. stock market. When the stock market crash does come, be ready to dip buy. When you do get these big crashes that happen within a few days or a few weeks like in 1987, that was an amazing time to dip buy into those big panics.

I dip buy penny stocks that are down for no reason. Maybe due to tax loss selling, maybe due to panic selling. Maybe due to stop losses getting taken out. Though no fault of the company's own. And that way, I get a value. I get a deal. And if the overall stock market is crashing for whatever reason, I want to buy a strong stock ideally that has been strong, and that is down just because every stock is getting taken out back and shot. Not because the company itself did anything wrong or announced any bad news.

I find that three out of four stocks follow the market. So if the whole market is crashing, most of the big stocks are going to be tanking. But, the biggest and best companies that offer a deal, that offer a discount are the ones that are going to bounce the quickest too. So be on the lookout for opportunities when everyone else is panicking. And the way to do that is to stay in cash, to sit idly by, and wait for the best opportunities.

And that way, you know, I miss out on this long bull market. I miss out on making 10 or 15% per year. But I can make 10 or 15% in a day, or in two days, or in a week, or in two weeks by being very focused on potential opportunities. Very meticulous with my entry and going for a bounce. And being just sane and logical in a time of madness, when everyone else is running around.

I guess you could make a real-world analogy you know like if there's a house on fire and everyone's freaking out, everyone's running around. I'm coolly, calmly like walking in the house and plundering it and taking fine art and taking the jewelry as everybody else is freaking out with all their smoke inhalation. You know, maybe I have a mask, maybe I have like a biohazard suit.

And so, I'm above the fray of the madness. Maybe that's not the best example. But the point is is that you have to remain calm, cool, and collected when everyone else is going crazy. That will give you an advantage. That will allow you to make the best trades and make the best investments. Enjoy, the stock market crash is inevitable. I don't know when, but it's going to come. So the question is, will you be prepared?

* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here