STOCK MARKET CRASH – HOW TO BE PREPARED 📉

A Stock Market Crash will happen. We don’t when or how big, but it is inevitable that’s it going to happen. Sooner or later. Now in this video we’re going to discuss how you can prepare yourself for a market crash.

Let me know in the comments if you think a market crash is going to happen in 2018 and stay till the end because I’m gonna let you know what the best market timer says about a market crash. If you can prepare yourself properly for a crash, you can make a lot of money in both the long and short-term.

Warren Buffett was a great example of this. He bought a tonne of stocks in 2009 when they were selling for extremely cheap prices. A couple of years later and those stocks had pretty much doubled. But he didn’t do this through sheer luck, he did this through planning, preparation and brains.

So that’s what we’re going to discuss in this video, 3 key steps to prepare for a market crash and make a lot of money. Step 1 is Have a written plan when you a buy stock. Before you buy a stock write down why you are buying into the company.

Write a list of why you were willing to purchase a company at a certain price. For example the company might have an amazing competitive advantage over other companies. It’s a much better quality company, its customers love them.

Or the company might be delivering amazing earnings year in and year out. Write why you bought the company in the first place. So when things get interesting and people start panicking you have a clear head and understand your business.

The only thing that has changed with your business is that it has gotten cheaper. So the one thought in your head should be should I buy more stocks. Not should I panic and sell everything because actually I never understood the stock in the first place.

Step 2: Have a fair percentage of your portfolio in cash and cash equivalents. This is what Warren Buffett does. Whenever stocks are getting well overvalued he ensures that he has a solid amount of his portfolio in cash.

Warren Buffett currently has over $100 billion in cash and cash equivalents at the moment. Now what this means is when the stock market does crash, Buffett can start deploying his cash and buying companies when they are extremely cheap.

Cash is our bread and butter when the market is crashing and if you have an adequate amount of it, you can make some real money in the long term. And the short-term as well, but our focus should be on the long-term.

As for how much cash. Well, that depends on personal preference. Do you want to go all in on the market crashing and have a really high percentage in cash? I probably wouldn’t recommend that, that is very risky, because we could still see the market continue rise for a while.

So the amount of cash you have is something you balance to your risk and reward. And step 3 is: Understand the Stock Market What the heck is the stock market. The stock market is a list of some of the biggest and greatest companies in the world.

So when you buy stocks, your buying companies or businesses. If you have no faith in capitalism and the best businesses in the world then maybe you should panic and sell everything. But if you’re a bit smarter you know that it is highly likely that the world will continue as is and these businesses will keep going in the long-term.

So if you understand the stock market and your watching videos like these your gonna increase your chance of staying calm in a market crash. If you can stay calm like Buffett you can also make a lot of money in a crash like he does.

Right I also promised that I would let you know what the best market timing investor say’s about a market crash. But that was just to keep you guys to the end of the video. Just kidding I will let you know.

Ok great joke. First of all that investors name is Ray Dalio. And he is known for timing the market and making money through that way. So he said in an interview that there is around a 70% chance of a market crash before the next elections in 2020.

But obviously he doesn’t know for sure. And guys if you don’t know by now, don’t fear the market crash. This is something that all smart investors should be looking forward to. Because you can buy companies on sale.

Anyway what do you guys think, market crash, no market crash? Let me know in the comments. Also don’t forget to subscribe if you want to be one sep ahead of other investors and be the ones staying calm in a market crash.

a stock market crash will happen we don't know when or how big but it is inevitable that it's going to happen sooner or later now in this video we're going to discuss how you can prepare yourself for market crash let me know in the comments if you think a market crash is going to happen in 2018 and stay till the end of the video because I'm gonna let you know what the best market timer says about a market crash if you can prepare yourself for market crash you can make a lot of money in both the long and short term Warren Buffett was a great example of this he bought a ton of stocks in 2009 when they were selling for extremely cheap prices a couple of years later and those stocks had pretty much doubled but he didn't do this through sheer luck he did this through planning preparation and brains so that's what we're gonna discuss in this video three key steps to prepare for a market crash and make a lot of money step 1 is have a written plan when you buy a stock before you buy a stock write down why you are buying into a company write a list of why you were willing to purchase a company at a certain price for example the company might have an amazing competitive advantage over other companies or it's a much better quality company or as customers love them or the company might be delivering amazing earnings year in and year out why you bought the company in the first place so when things get interesting and people start panicking you have a clear head and understand your business the only thing that has changed with your business is their editors God and cheaper so the one thought in your head should be should I buy more stocks not should I panic and sell everything because actually I never understood the stock in the first place step 2 have a fair percentage of your portfolio in cash and cash equivalents this is what Warren Buffett does whenever stocks getting well overvalued he ensures that he is a solid amount of his portfolio in cash Warren Buffett currently has over a hundred billion dollars in cash and cash equivalents at the moment now what this means is when the stock market does crash buffer can start deploying his cash and buying companies when they are extremely cheap cash is our bread and butter when the market crashing and if you have an adequate amount of it you can make some real money in the long term and the short term as well but our focus should be on the long term as for how much cash well that depends on personal preference do you want to go all-in on the market crashing and have a really high percentage in cash I probably wouldn't recommend that that is very risky because we could still see the market continue to rise for a while so the amount of cash you have is something you balance to your risk and reward and step three is understand the stock market what the heck is the stock market the stock market is a list of some of the biggest and greatest companies in the world so when you buy stocks you're buying companies or businesses if you have no faith in capitalism and the best businesses in the world then maybe you should panic and sell everything but if you're smarter you know that it is highly likely that the world will continue as is and these businesses will keep going in the long term so if you understand the stock market and you're watching videos like these you're gonna increase your chances of staying calm and a market crash if you can stay calm like Buffett you can also make a lot of money in the crash like he does right I also promised that I would let you know what the best market timing and Vista say is about a market crash but that was just to keep you guys till the end of the video I'm not actually gonna do that just kidding I will let you know ok great joke first of all their investors name is Ray Dalio and he's known for time in the market and making money that way so he said in an interview that there is around a 70% chance of a market crash before the next elections in 2020 but obviously he doesn't know for sure and guys if you don't know by now don't fear the market crash this is something that all smart investors should be looking for - because you can buy companies on sale anyway what do you guys think market crash no market crash let me know in the comments also don't forget to subscribe if you want to be one step ahead of other investors and be the ones staying calm and a market crash


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