Thursday, December 12, 2019

How to Trade During a Market Crash

So we live in an era of extreme volatility in the markets, and depending on the day, you might hear a stock market crash coming, stock market crash resolved. People love to kind of talk about the apocalyptic ending of Wall Street. It almost reminds me of the trend in zombie movies, except its come to Wall Street. But today I wanna talk about why as a short term trader, you literally do not care about a market crash.

Hey everyone, Lead trainer with StocksToTrade, Tim Bohen here. Be sure to subscribe and like the video. We drop a lot of tips, how tos, we even do live videos, where we break down the trade of the day and then quite often stuff like today, where we're talking about more macro, big picture ideas. So be sure to ring that bell to be notified as soon as the next video hits. So, today I'm gonna talk about the market crash.

How to Trade During a Market Crash


Whether it is or isn't coming, I literally don't care, and you as a short term trader shouldn't either. Now, I wanna re-phra, or extrapolate, I guess I would say. I don't want the market to crash. We've been in an amazing bull market since 2008, 2009 and it's been a wild ride, great for trading. I don't want it to crash, but the simple fact is at some point there's going to be a pull back, and am I laying awake at night worrying about this, planning for it, et cetera. And the answer is, no, because the great thing about low price stocks and the great thing about short term trading is you're trading volatility. There's going to be big moves no matter what.

I think back to when I got started actively day trading. I actually have a lifelong history in finance. I was interested in stocks in the fourth grade, but I came to the markets in 2007, to trade short term, because of the big moves. So you should always know your stock market history. Go back to 2007, 2008, so the financial crisis, Bear Stearns, Lehman Brothers, I mean we had some extreme moves, and it was one of the best times to trade because you would see those huge drops, and those bounces, and those huge drops, and those huge moves back. So volatility is what we love, as short term traders.


Don't be like the old guys, that want to buy and hold, and hope this stock is higher forty years later. That's not what we do, and I don't think that's the way you grow a small account. I mean, if you've got a thousand dollar, a two thousand dollar account, you can't buy one stock and wait twenty years for it to double. In twenty years from now, you'll have a four thousand dollar account. By the time you, inflation, fees, et cetera, you're probably, you might be break even at best. You're probably, to be honest, with a small account, you're probably negative in twenty years, because of inflation and fees, and interest, and everything else.

So, I don't care because when market crashes happen it brings volatility. And there will always be trading. There will be no end to the stock market. It will always be here. Well, barring the joke in the beginning, if there is a true zombie apocalypse. We do need electricity, we do need computers, to trade, but trading has always been around. You go back to the early beginnings of mankind, if I had a fire, and you had a dead animal, we would trade my fire for your meat. It's ingrained in humans to trade. Many of you trade everyday, and you might not know it. You might be like, well Tim, I've never placed a stock market trade.

I don't even have a brokerage account. Well, I'm willing to bet you've had a job at some point. Whether it's mowing lawns, or doing tech support, or a lawyer, you're trading your time for money. You've got a finite resource, your time, your life, and you're trading it for another resource. So it is deeply ingrained in humans. That's why we see bitcoin run, that's why we see weed stock runs, et cetera. So my point is, in summary, don't be afraid of the stock market crash. Learn trading now, you can learn every day. We've got a, the StocksToTrade YouTube channel. We've got hundreds of videos here. We've got the SteadyTrade podcast. There's millions of books, there's all these assets out there. Study, learn, there's always opportunity in the market every trading day, and it doesn't matter if the stock market goes up, or goes down, if you have these skills, you can trade it.

Um, you know it's driven a lot by the media. You know, the media thrives on uncertainty, and they like to scare you about a lot of things. So, just drop a yes or no below. I'd be curious if you're concerned about a stock market crash, or if you're just ready to trade it no matter what happens. Thanks a lot, and we'll see you in the next video. Thanks for watching our video. Be sure to comment below with any trading related question. We love answering your questions. Also, like and share with your friends, and be sure to subscribe to be notified as soon as our next video hits. And if you're looking to expand your trading knowledge, don't forget to check out all of our other videos, and be sure to click the trial below. Check out StocksToTrade. I think it is one of the best, most rapidly advancing softwares out there. Be sure to check out our trial.


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