What To Do During a Stock Market Crash: Spot The Trends, Make Smart Decisions!

What To Do During a Stock Market Crash: Spot The Trends, Make Smart Decisions!

I'm sharing with you what the
specialists suggest doing during a stock market crash or correction stay tuned three separate devices this is one
device Hey everybody I'm Sam and this is Entiversal
today we're trying to figure out what should we do during a stock market crash
or correction which is what we're experiencing at the moment of filming
this video I'll be looking through the main points that specialists in the area
suggest that we should drew and I'll also share my point of view if you want
to feel really good video on the main ideas behind when should we buy or sell
a stock and investment as a whole check out my video on how should we trade
investments which is linked in the top right of your screen in the card section
so first thing was the difference between stock market crash and stock
market correction well Corrections are usually sparkled by
some kind of fear because of some kind of news or very little data that may
mean some kind of bad news in the future or some little weakness in fundamentals
of the economy or companies at the moment
sometimes Corrections especially smaller ones can be triggered by seemingly
almost nothing but the fact that stocks keeping going up right so you know
particular stock goes up 20% 30% it may have a correction of 3 4 5 6 % down
without any news or something like that while stock market crash is usually
triggered by some kind of big fundamental shift or fundamental
problems in the underlying economy and the one that we probably all remember is
the 2008 stock market crash was caused of because of basically bad depth in
real estate so how can you actually figure out if the stock market is in a
correction over all the big indexes like for example for America that would be s
AP 500 you know Nasdaq Dow Jones would be Oh Dow and they may be significantly
down like 3% in the 4% in a day or you know seven eight
percent in the West we actually change in the trend of the stock market which
is over a few days time period you know some maybe most of the big leaders that
have been growing and pushing the stock market up in the last bull run might be
a reversing and showing weakness for example at the time I'm filming this
weakness was short form for example Alibaba from Google from you know big
tech companies Apple even most table stocks like the Dow Jones so you
probably see a few days of downtrend with the big leaders going down with the
market even more than the market and there would be maybe some big volumes of
selling now a correction most of the time means that they will be a lot of
volatility in the market and overall where there is volatility theoretically
a lot of money can be made right because at one day stocks are four percent down
and the next day they're tripping Center and so on so if you can actually time
that you can make a lot of money on options and different kinds of
investments however if you are not seasoned day trader and if you aren't
actually done that and have experience with that and have also the mentality
behind this I would really say that it is dangerous and you probably lose more
money because in the end the most important thing is to understand
yourself and to stick by your roots right for example I'm a long-term
investor which is why I don't try to play volatility during a crash or during
a correctional volatility even though that it's very tempting so we have a
correction right when would we know that you know the correction or crash has
ended you know we're at the bottom and a rally is coming so we can buy in
obviously that is very hard so time and nobody can really time it
absolutely exactly but overall we can all look for a few common things that
may mean that a rally is coming or even if they don't mean that necessarily in
the next day you know stocks who go up and never go down again maybe they can
give us some kind of good buying point after correction most of the time our
reverse in the trend through Bull Run comes when all of the major indexes as I
said in the market at scp-500 Nasdaq Dow Jones are all in the green for at least
a few days so that's you know three four days with big volumes in the green or
there is maybe a little volatility but they're all bouncing of that button that
we're talking about so we can see that they don't want to fall the world that
during smaller Corrections the best sign is actually indexes reaching a new
all-time high so for example you know maybe there was correction of 78% and
then there are three or four days up and the indexes are already at all-time high
that most of them that means that Riley's coming so you know the stock
market may continue going up so somebody will my ask like okay but how can I
actually predict that the correctional is coming or you know when exactly I can
sell before crash is coming obviously that is very hard to predict as I said
nobody can predict it for sure but a science for that would be some kind of
uncertainty coming into the future or just very long boren like the stock
markets have been up a lot that sound explanations and at the moment we could
see that in the start of January stocks were like crazy up which didn't make
sense because nothing new was happening and as we saw now just the market is in
correction so there is obviously a correlation there so what should we as
investors do if you're like super long-term investor and you don't need
the money and you have a lot of money just my opinion is probably especially
in Corrections but probably for crashes – as long as there isn't anything
fundamentally wrong or change with your stock so you are absolutely certain with
your investment decisions and you can reevaluate them and you feel that
they're undervalued at the price they at the moment with having in mind
uncertainties and a fact for the future then probably I would just stay with my
stocks and if they go down you know they might go down 10 15 percent I might just
add in more shares because if I told that they are undervalued at X when they
fall down they should be even more undervalued right but obviously if you
know some kind of news come up facts fundamentals change probably you should
we evaluate that's a common thing for even if there isn't a correction right
but especially when there is voted in the market we should pay even closer
attention to our stocks overall if you would like to spend more time into it
and be more hands-on and you have different stock picks no matter how in
the valid they might be or looking good they go down with your world market
which means that when a correction is going on your stocks will go down so
maybe a good decision would be to sell some or take partial profits from them
so when they continue going down and you know you see a reversal in the trend you
can buy up more on you already know by another stocks however if you are more
of a passive and really long term investor specially if you are investing
in two indexes or ETF you probably should just buy more and more when the
prices go down because that means that you are buying shit on a cheaper price
and over all those indexes the ETF's defo the whole market and in the long
term the market always goes up and that's a thing that you know in just
a fact in the last hundreds of years and I don't believe that it would change in
the future as I said during stock market volatility meaning correction crash and
then resuming of uptrend it is very important to watch over your
stocks make informed decisions not because of fear or because of feelings
but really because of fundamentals and what you believe is the right thing to
do and then also look around you know build your stock watchlist look at the
stocks that are maybe going down a lot without any sound reason and they seem
redundant violate or make that amazing company that you want to buy in but it
was really expensive until now but now it's on a better valuation or something
like that so beaut your watchlist because the moment that you see that an
uptrend is returning and you know our rallies coming you'll be able to make
better decisions and execute instead of waiting around and missing on profits
overall in and after a stock market crash or just deep correction really
highly rated a good company's rebounds the faster and you know that could be
the apples the googles the really powerful companies with big earnings
with big modes with big brands and so on so obviously they will always be safer
and they will probably also rebound faster than other companies that might
grow a lot in a pure bull run how can we actually see that the correction might
be happening well when everybody a bullish right that's why I said when the
stock market goes up a ward without any sound reason then probably there is
something wrong because when everybody are bullish a saturation comes in where
everybody have both there is no people to buy and then maybe some kind of fear
comes in some kind of wiggle there and what happens is a very fast correction
or hopefully not it could cause a crash in the same time when everybody
barish right and everybody have sold probably there is nobody left to sell so
you know an uptrend comes up that's what means that there is a button so you know
obviously Warren Buffett we all know who he is his quote is
always on point right be fearful when others are greedy and be greedy when
others are fearful and I think I would leave you with this quote check out my
other videos on financial education success mindset entertainment technology
it's it's over you and I believe it could give you very valuable information
I hope you enjoyed this video Stay Entiversal – on the path to greatness


  • Entiversal

    ▼Main Talking Points▼ Don't forget to subscribe and hit the ring bell for more interesting uploads ?

    00:23 Intro
    1:05 Difference between the reasons behind crash and correction.
    2:14 How to figure out if the market has entered a correction
    3:32 Tips on making gains in volatility
    4:32 How to figure out when the down trend ha reached a bottom
    6:04 How to predict a correction/crash is coming
    6:51 What to do into a down trend

  • Entiversal

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