🛠Toolkit For A Market Crash💥

LMSunshine
2023-01-08

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 



Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Lionel8383
    2023-01-09
    Lionel8383
    Becareful of leveraged 3x etfs, statisically it has shown that in the long run they out perform. These are only good to hold for a few days.


    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
    • LMSunshine
      Buddy, do you mean in the long run they dont perform as well?
    • YonhuatReplyPhoenixBee
      They move 3x the amt. If QQQ rise 1%, then TQQQ will rise 3%
    • PhoenixBee
      How does 3x leverage work? Options is also a leveraging tool but haven't try options on ETF. Even if ETF price drops, it's also due the top few stocks are not doing well.
  • 88wlam88
    2023-01-09
    88wlam88
    Excellent elaboratoon 👍, sparing the dry powder for market💥….
    • LMSunshine
      Thanks🥰 If you enjoy reading my post, you can follow me and my new post will be on your community-follow tab😉 Hope to hear more from you in my future posts🤓
  • moliya
    2023-01-12
    moliya
    well thought n frased out
    • LMSunshine
      Thanks buddy❣️ Glad you enjoyed reading💕💕💕
  • Kaixiang
    2023-01-08
    Kaixiang
    Nice share! [Grin]
  • setia100
    2023-01-08
    setia100
    good lesson 👍👍👍
  • psk
    2023-01-09
    psk
    thanks for sharing
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