Dear Broker, Can you give me some Profit Making Strategies during Market Crash. Dear tips provider, Google, and big list of people where the Investors look upon for best trading strategies to earn profit during the market crash. Here are the simple easy Profit Making Strategies by Trading Fuel which you can apply during market crash.
Can these strategies be applied during inevitable Market Crash?
Always be ready to face the boom and bust in the financial market. It’s certain. The Central Banks and Governments are in search of providing solutions to prevent financial meltdown. But so far, they are not successful. On the other hand there are majority of the investors who do not know how to handle the bad times and hold on to their stocks that might never recover and might lose million of money.
Should we look this as an opportunity or Tragedy?
Majority of the people will see this event as a terrible financial crisis and stay themselves for bad times ahead being poorer. While there are few people who looks the same incident at greatest opportunity? Eg. Person like Warren Buffet saw this as big opportunity and made billions of money during the bad time. He bought the shares of the companies at a discount price when no one was ready to buy that. He became richest man because the prices went back to their true value.
Keep an eye on when to enter or exit the Market
Many investors keep serious assumption about the recovery of economy in order to make profit making strategies during market crash. Usually the recession takes three or four years. The behavior of the market clear indicates its next move. E.g. The market starts plunging months before the economy goes down. On the contrary it moves up before the economy begins recovering.
This is the reason why uneducated investors always enter the market late and exit also late.
Decision to become rich or poor is up to you
You cannot control the economy as whole but you can decide whether you want to head towards the journey of becoming richer or poorer.
The market performance is always measured by index and definitely it will go up.When you do nothing you will definitely push yourself on the path of becoming poorer. So, if you do wrong thing you will become poorer. If you follow the right path then definitely you will retire wealthy.
|USA||Dow Jones Industrial Average||Indicates performance of: 30 largest capped American companies|
|India||Bse Sensex, Nifty Fifty||BSE Sensex is an index consisting of 30 stocks. Similarly, the Nifty 50 shows the performance of 50 stocks.|
|Singapore||Straits Time Index||29 representative companies|
|Japan||Nikkei 225||Most watched Asian Index|
|China||SSE Composite||50 Chinese companies|
Based on the historical index price above we can see that the index is always trending higher and higher no matter what.
There are reasons why index always trend higher. Here are they
- Population Growth ( Growth in Demand)
- Structure of Index ( only retains the best companies)
- Economic growth
- Technology advancement
The markets are very risky and unpredictable in the short term while in the long term markets are safe and predictable.
Learning from the previous Market Crashes
- The market will not only recover its losses but will make substantial gain in the next few years.
- You should not panic and sell the stock out of fear. It is better advisable to buy more of fundamentally strong companies and Index.
- You lock the real losses by selling during downturn and you set yourself up for the huge profits by buying during downturns.
- The longer is the duration of the Investment the lesser risky it is (Minimum 5 years).
From the past returns records it clearly states that if you invest for at least 10 years then you get 12.08% risk free annual compounded return.
Lastly to conclude based on the market Index movements
- The market is volatile during the short term
- The market always goes up in the long term
- The lower is the risk factor if you invest for longer duration.
- If you hold for longer duration you will always win.
Thank you for Reading our Profit Making Strategies during Market Crash Blog. Read All Blogs From our Stock Market in Trading Fuel.