Fellow 🐯🐯🐯 we often read about “Market Crash💥” & “🐻Bear Market”. Are these terms just used interchangeably or are they different❓Before I go into my tools🛠 for a market💥, it’s important that we’re both on the same page, so let’s look at some definitions 1st🕵🏻♀️🕵🏻♂️
On the other hand, a stock market crash💥 is a rapid & often unanticipated drop in stock prices📉😲🤯 This abrupt drop is usually characterised by a double-digit % drop in a stock index over the course of a few days.
A stock market💥:
➡️ Can be a side effect of a major catastrophic event, economic crisis, or the collapse of a long-term speculative bubble🫧
➡️ Often make a significant impact on the economy.
⚠️ Reactionary public panic about a stock market💥 (e.g. Covid🦠 market💥) can also be a major contributor to it, inducing panic selling that depresses prices even further.
💡So…technically…we’re NOW in a 🐻market currently & NOT in a market💥 However…if there’s a 🌎global recession in 2023, there’s a possibility of a market💥 Market💥💥💥 are inevitable (see photo) as the stock market works in 🐂 & 🐻 cycles. So before the next market💥 happens, let all of us 🐯🐯🐯 be prepared for it, so that when it does happen, we’ll be less affected💪💪💪
‼️Note: Selling shares after a sudden drop in prices & buying too many stocks on margin prior to the market💥 are 2 of the most common ways investors lose 💸💸💸 So…with these in mind, this is My🛠Toolkit For A Market Crash💥
🛠1: Never Commit With 💵 We Don’t Have❣️
➡️ Avoid buying on margin. Buy stocks with 💵💵💵 that we can afford to lose😉 We can always earn back what we lost in the stock market at a later time when our savings allow again. We shouldn’t place ourselves & our families in a position of possible debt💪💪💪
🛠2: Do Regular Reviews Of Our Portfolio Ensuring That We Don’t Have Overly-Risky Stocks❣️
➡️ Questions I like to ask myself on whether I’m holding overly-risky stocks are:
(1) Has this stock recovered from a market💥 before❓
⭐️ If I’m holding a stock that hasn’t been through 1, then this stock is overly-risky🚨 I’ll sell it ASAP before the panic sellers sell it before me😂
(2) Has the fundamentals of the stock change❓
⭐️ If the company’s balance sheet is poor, I’ll sell it. Companies with high debt will be high risks during recessions🚨
(3) Do I have the ability (will I need the💵💵💵 if there’s a recession) & Am I willing to hold this stock during a market💥 no matter how low it goes❓
⭐️ If my answer is No🙅🏻♀️ to both questions, I’ll sell this stock💪
🛠3: Sell All Stocks That Has A Loss PE If There’s A Possibility Of A Market💥❣️
⭐️ Now’s not the ⏰ to invest in company that has a possibility to make profits. In a market💥 this stock will only go lower🪨🪨🪨 If I really like & believe in this company, I can always buy it back later😉 Capital Preservation Before Market💥💥💥 Is Priority❣️
⭐️ This will give me ready 💵💵💵 to buy stocks later😃
🛠4: Do Nothing At The Start Of A Market💥❣️
⭐️⭐️ Since I’ve done 🛠1-3 before the market💥, I’m all prepared & there’s no need to sell anything since the stocks I hold are fundamentally strong companies that can recover from the market💥 eventually🤓 Never FOMO or panick in a market💥 Be Zen😌😌😌
🛠5: Go Shopping 🛍🛍🛍 In the Middle A Market💥❣️
We can never ⏰ the bottom so best to buy on the way down👇
⭐️ 1 ➡️ Spend 25% of my 💵💵💵 to Buy High Dividend Yield Stocks❣️
⭐️ 2 ➡️ Spend 25% of my 💵💵💵 to Average Down On Current Holdings❣️
⭐️ 3 ➡️ Keep 50% 💵💵💵 For Further Purchases❣️
🌟🌟🌟 If the market goes lower/starts recovering, I will spend another 20% on dividend stocks & the remaining 30% on leveraged ETFs like because what goes down👇 must eventually go up☝️🚀🌕 $Nasdaq100 Bull 3X ETF(TQQQ)$ Bullish $Semiconductor Bull 3X Shares(SOXL)$ Bullish $Tesla Motors(TSLA)$ Bullish $Apple(AAPL)$ Bullish $NVIDIA Corp(NVDA)$ Bullish
⚠️ Leveraged ETFs is my preference as it gives higher returns. However, they also carry high risks, so do ensure that you research carefully before buying. I’ve written quite a bit on them👩🏻💻-you can click on the Snoopy icon & find them on my homepage🔍
Fellow 🐯🐯🐯 what are your thoughts about my market💥 toolkit🛠 & what would you do differently❓Love a convo, so do share them with me in the comments section ❣️ Please also help to click on the “Like” & “Share/Repost” buttons at the bottom right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
@TigerStars @CaptainTiger @MillionaireTiger @Tiger_chat
Comments
Also the algorithm trading is responsible for panic selling too. These are usually those robo advisors that have been configured to let go poor performers etc