{"id":1524,"date":"2018-12-17T07:00:22","date_gmt":"2018-12-17T15:00:22","guid":{"rendered":"https:\/\/www.steadytrade.com\/?p=1524"},"modified":"2019-04-05T11:55:59","modified_gmt":"2019-04-05T18:55:59","slug":"ep-76-preparing-for-a-market-crash","status":"publish","type":"post","link":"https:\/\/www.steadytrade.com\/ep-76-preparing-for-a-market-crash\/","title":{"rendered":"Preparing for a Market Crash"},"content":{"rendered":"\n<div id=\"backtracks-player\" data-bt-embed=\"https:\/\/player.backtracks.fm\/st\/steadytrade-com\/m\/ep-76-preparing-for-a-market-crash\" data-bt-theme=\"dark\" data-bt-show-description=\"false\" data-bt-show-comments=\"false\" data-bt-show-art-cover=\"true\"><\/div>\n\n\n\n<p><script>(function(p,l,a,y,e,r,s){if(p[y]) return;if(p[e]) return p[e]();s=l.createElement(a);l.head.appendChild((s.async=p[y]=true,s.src=r,s))}(window,document,\"script\",\"__btL\",\"__btR\",\"https:\/\/player.backtracks.fm\/embedder.js\"))<\/script><\/p>\n\n\n\n<p><b>Episode 76: Preparing for a Market Crash<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">This week\u2019s episode focuses on a sobering topic: Is the market headed for a crash? <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">With the market\u2019s recent declines, many traders are bracing themselves for the worst. Here, hosts Tim Bohen and Stephen Johnson address what\u2019s happening in the market and weigh in with their thoughts. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">It\u2019s always good for traders to be prepared for potential downturns. In the episode, you\u2019ll learn some great tips for how to survive and keep trading during a market crash. And since this podcast lives to give, you\u2019ll also be treated to Stephen\u2019s soul-stirring singing rendition of Tom Petty\u2019s hit song, \u201cFree Fallin\u2019.\u201d <\/span><\/p>\n\n\n\n<p><b>The Market is a Gauge of Sentiment<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Here\u2019s the thing. The market is deeply affected by the sentiment of traders. This means that if there\u2019s a buzz in the air that the market is headed for a decline, it leads to selling, which leads to more selling, which can cause a market crash. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Because of this, sometimes it\u2019s hard to discern if there\u2019s an actual crash headed your way or if it\u2019s just a temporary situation brought on by fear. <\/span><\/p>\n\n\n\n<p><b>Preparing for a Market Crash: Survival Tips<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In recent weeks, the market has seen some ugly days and bounces that haven\u2019t recovered. While a crash isn\u2019t definite at this point, it\u2019s wise to think about your game plan for if the market does crash. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">In the episode, Tim and Stephen share some of their best tips and considerations, including:<\/span><\/p>\n\n\n\n<p><b>Remember, it\u2019s temporary. <\/b><span style=\"font-weight: 400;\">What goes up must come down. In the stock market, ups and downs are natural. The market will always experience fluctuations. While it can be scary when it trends downward, remember: it\u2019s only a matter of time before happy days are here again.<\/span><\/p>\n\n\n\n<p><b>Consider your long-term plan.<\/b><span style=\"font-weight: 400;\"> A market crash is a great time for traders to look at their long-term goals. Is trading really a long-term plan for you?<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Tim talks about how he goes short on trading but his long-term retirement plan is real estate, because \u201cpeople will always need a place to live.\u201d Considering your long-term goals can be a good way to make the most of a crash. <\/span><\/p>\n\n\n\n<p><b>There are always opportunities. <\/b><span style=\"font-weight: 400;\">The same volatility that can make people (mostly civilians) lose money can benefit others. Bankers and hedge funds, for instance, still tend to benefit from a crashing market. You can, too.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">No matter what the market conditions, there are always opportunities for traders. You may need to change your tactics in a down market, though. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">For instance, while Tim hasn\u2019t been short selling much for the past two years, that may change in the near future.<\/span><\/p>\n\n\n\n<p><b>Short selling isn\u2019t always easy. <\/b><span style=\"font-weight: 400;\">While short selling can be a way to profit in a downward-trending market, it\u2019s not always simple. You can get smoked on getting shares, and you can have trouble getting borrows. So it\u2019s important to find a good niche with short selling. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Stephen talks about his shorting approach, which can be summed up in three words: \u201cnegative, negative, negative.\u201d He also talks about the danger of getting lazy and the potential pitfalls you may experience as a result.<\/span><\/p>\n\n\n\n<p><b>Consider higher-priced stocks.<\/b><span style=\"font-weight: 400;\"> There\u2019s a lot of fear in the penny stock market during crashes, so people take gains earlier and aren\u2019t holding on as long. <\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">On the other hand, higher-priced stocks naturally go down when the market does, so they may become more accessible to traders during a crash.<\/span><\/p>\n\n\n\n<p><b>There will still be sector trends.<\/b><span style=\"font-weight: 400;\"> During a crash, you need to dial in on the hot sectors. Why waste your time on things that can\u2019t be predicted at all?<\/span><\/p>\n\n\n\n<p><b>Stops are even more important than ever. <\/b><span style=\"font-weight: 400;\">Or as Tim says, \u201clook for idiot stops.\u201d He likes when a stock has a crystal clear exit point that is obvious to just about everyone. A trading plan is super important in times like these, and so is sticking to the plan!<\/span><\/p>\n\n\n\n<p><b>Do your research.<\/b><span style=\"font-weight: 400;\"> A market crash is not the time to get lazy about your research. If anything, it\u2019s even more important than ever! Good fundamental and technical analysis are always a good idea, but they\u2019re particularly important during a market crash.<\/span><\/p>\n\n\n\n<p><b>Keep showing up. <\/b><span style=\"font-weight: 400;\">Keep learning, keep researching, and stick with it. <\/span><a href=\"https:\/\/www.steadytrade.com\/\"><span style=\"font-weight: 400;\">SteadyTrade<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/stockstotrade.com\/\"><span style=\"font-weight: 400;\">StocksToTrade<\/span><\/a><span style=\"font-weight: 400;\">, and other resources are here to help keep you updated on the market. <\/span><\/p>\n\n\n\n<p><b>Got Questions?<\/b><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Do you have something to ask Tim and Stephen? Visit the \u201c<\/span><a href=\"https:\/\/www.steadytrade.com\/submit-your-audio\/\"><span style=\"font-weight: 400;\">submit your audio<\/span><\/a><span style=\"font-weight: 400;\">\u201d portion of the website to ask away.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Thanks for tuning in to the SteadyTrade Podcast. Stay tuned for weekly episodes featuring the hottest topics for traders of all levels.<\/span><\/p>\n\n\n\n<p><b>Did you love this episode? Be sure to leave an <\/b><a href=\"https:\/\/itunes.apple.com\/us\/podcast\/steady-trade-the-profitable-side-of-trading\/id1275946076?mt=2\"><b>iTunes review<\/b><\/a><b>!<\/b><\/p>\n\n\n\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/sGa99mn4Jyk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Episode 76: Preparing for a Market Crash This week\u2019s episode focuses on a sobering topic: Is the market headed for a crash? With the market\u2019s recent declines, many traders are bracing themselves for the worst. Here, hosts Tim Bohen and Stephen Johnson address what\u2019s happening in the market and weigh in with their thoughts. It\u2019s [&hellip;]<\/p>\n","protected":false},"author":2283,"featured_media":1529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[3],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Preparing for a Market Crash - SteadyTrade.com<\/title>\n<meta name=\"description\" content=\"Episode 76: Preparing for a Market Crash. This week\u2019s episode focuses on a sobering topic: Is the market headed for a crash? 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