What are we going to Do?
During stock market crashes fortunes are made and fortunes are lost right now is certainly one of those time and the date is April 6th, 2020 and our economy is currently being threatened by the rapid worldwide spread of the coronavirus. Thanks a lot,
Wuhan, when is eating a bat ever a good idea. Anyways, maybe we should stop eating that all jokes aside. I hope you and your families are healthy during a scary time. Anyways,
the world is in an uproar right now and in an effort to slow down the spread of the virus sporting events are being canceled schools and stores are being shut down and we're even being encouraged by the government to self-quarantine ourselves.
And this is all having a major effect on our economy. Nobody knows what the future holds or how bad this will get and not fear and panic have caused huge declines in stock prices this
The month is the worst month. We see in the market since October of 1987, but large Market moves like we're seeing create extreme opportunity. So with that being said, let's talk about a few different strategies. We could use it to take advantage of this market crash strategy.
Buys & Holds stocks.
This one is the obvious one. This is a great strategy. If you prefer to be a bit more hands-off and passive and if you are okay with holding the position for a while if you have to and listen, even if you were an advanced trailer with veteran level experience,
you are never too good for the old school to Buy and Hold strategy.
I'm personally a very active Trader and buying and holding stocks is certainly not my go-to strategy, but when the most stable companies in the world are trading huge discounts if proven to be a pretty good idea to scoop up a few shares to hold for the long-term.
All of the big stocks are very correlated during times like this anyways, but if you
Now, I don't have a ton of money invested as I like to keep most of my cash free for the act of trading that we'll talk about in a second, but you can see that these stocks are doing pretty well so far and I actually did take profits on most of this Boeing position since I caught a 60% move in just seven days. So you don't necessarily have to hold them long-term if you get that big move in such a short time,
but setting trade up with the expectation to hold them long term is what's important and you can also see I'm not up a ton on the Year. We're a little over three months of the year. I'm up around eighty-seven hundred bucks, but the fact that I'm up at all with this Market down 25% is a positive in my book. The reason for this is because before the crash I didn't own stocks.
1. buying stocks number one by into weakness, not strength.
Was just actively trading options and we're going to get to that in a second because I believe the opportunity for trading options right now is greater than ever before but first, before I move on here's a few tips I have for buying stocks number 2 by into weakness, not strength. I think most veteran Traders would agree with me here.
Don't wait until everyone is done panicking and for the market to start reversing before buying after this kind of sell-off. There's going to be plenty more dips by into them rather than chasing the market around.
Okay, the number to diversify a debt sure. It's pretty tempting to buy a ton of airline stock right now. And to be honest, it probably will pay off but the safest bet is on the US economy as a whole not on certain industries.
It's okay to speculate and by certain industries, but it's always good to diversify a bit.