Hey guys, it's sasha, the stock market in 2021 is jittery. After the biggest bull run in history. The u.s stock market reached new all-time highs last week, but over the weekend confidence has been dropping sharply and many people are predicting a stock market crash. Us inflation rose to 5.4 at the end of june, the largest increase since august 2008, and the month-to-month growth in 2021 is looking alarming.

Quantitative easing is printing money at rates we have never seen before, and despite this, the central banks in the us and uk are saying that inflation rises are temporary they're, not here to stay and they're here due to the impact of last year's shutdowns and are keeping Interest rates at near zero levels, but global confidence is really dropping. Tech stocks that dominate the u.s stock market are valued on future profits, which are at risk of losing a lot of value to higher discount rates, and this morning, stock markets in the uk, germany and france are all down over two percent pre-market data for the us Is not looking great with a big wall of red as i'm recording this and the stock market is going to be opening in about 30 minutes. Nobody knows when, but at some point the stock market will crash, because that's what markets do? Corrections are part of how stock markets work, but when the markets do crash, a lot of people, panic and the media will do their best to print doom and gloom headlines and when the moment comes and the stock market prices begin tumbling down and everybody panics. Some people are going to be sitting there, making money instead of losing it and i'm not talking about the short sellers or the hedge fund managers.

I am talking about regular investors like you and me, who can also make money during stock market crash or maybe not lose as much as they otherwise would, and i'm gon na share five key strategies with you. Just before i do here is a brief disclaimer. I am not a financial advisor, i can't provide financial advice to you and if you do need financial advice, please make sure you go and seek the help of a suitably qualified professional. This is an educational video.

Only now my first tip is very important. It is both the easiest and the hardest thing to do during a market crash, and that is just holding your positions. The biggest mistake that many people make during a stock market crash is to sell out of all of their positions, they're going to sell their stock. The moment things begin going bad and it's easy to see why you'd want to do that.

Your stock might be 10 down and the media is telling you that the world is ending. Everything is going down, so you go and sell because you want to cash out before the stock falls even further before it hits 40 or 50 down. But the big problem is that most people will lose far more money, trying to time that sale, trying to sell out before the market falls to the bottom than they would actually lose in an actual crash. If you sell too early, you may well just be selling a temporary dip and this happens a lot.

The stock market moves in mysterious ways and you might see a five percent drop and think. Well, that's the start. Everyone's been talking about this bang, the prices are down like this morning with the ftse 100 in the uk. You will then sell and the market then changes its mind next week and bounces back by 10, while you're sitting there on your cash and you're sat there sitting watching the market go up, while your money is not growing at all missing on some of the most Profitable days of the year in the stock market, the market dropped by five percent in a short window six times in the last 12 months and mounts right back up afterwards.

So if you always go and look at it and when it looks scary, you go and sell off each time it happens and then buy back when it recovers, you'll be losing quite a lot of money. With your investments, a crash almost never happens on a single day. Yes, you do have some bad days when the stock market may lose quite a lot of value, but the next day might bounce back and then it might even grow back for a week or maybe even a month. But a stock market crash is something that you really begin to understand and analyze and see exactly how it unfolded after it happens not before it happens, so, certainly not at the start of it and if it's happening you'll typically have no idea.

If this is just a short-term correction, if this is the start of a full-on crash or something in between, and so if you wait and you try to understand what is happening and then by the time you have understood, you've lost 20 or 30 of your value And then you decide that it really is a crash and you sell then then you're already too late. A stock market crash will typically wipe out about 40 percent of the value from the peak before the crash to the bottom. Afterwards, it varies and sometimes can be higher and sometimes it can be lower, but by the time you are 20 to 30 down you're already more than halfway to that bottom point. Selling at that point means there is a very high chance.

You will miss the actual bottom or even, if you do reach it, the difference is not going to be that great and then you might actually miss the big bounce back. You'll think that this crash is still continuing and maybe it's only 35 down and you think it's going to continue going further, but then it bounces to far above the point at which you sold and you're sitting there holding your cash thinking. Why did you go and sell? Which brings me to my next point, which is an incredibly important thing to do during market crash, and that is to remain calm? It is very easy to say - and i appreciate that it sounds incredibly simple, but it is very very hard to do, especially if you haven't been through one of these before all the media will be telling you that the whole economy is collapsing. You need to get out.

It is the worst thing ever. It is the worst crash that we've ever seen the stock market is red, shops might have shortages, social media will be full of dire forecasts. Everyone is going to be saying loads of stuff. It's going to sound incredibly awful, a market crash is a very high pressure situation and in any high pressure situation, what you really need to do is you need to stop and think rationally don't sell or buy anything, because somebody told you to don't sell on any Hype on any random news on any kind of stuff that you hear on social media do not make rash decisions on the back of a tabloid headline or people shouting on cnbc do proper due diligence and use numbers use logic based on data and just turn off The noise now, the most profitable thing you can do during a stock market crash, is to buy the dip if you've done your homework, and the crash does not affect you.

Thinking on the long term, optics of your investments, a market crash, can be a great opportunity to buy those stocks at a huge discount in big market crashes. That discount can be insane, especially in the industries that are hit particularly hard during that specific crash, because most crashes have won two industries that are disproportionately affected. Some tech stocks, like amazon, crashed to incredibly low prices, losing 95 of their value in the dot-com bubble, and banks like capital, one, for example, lost huge amounts of their share price dropping to below 10 after the 2008 financial crash, and often these short-term prices are incredibly Low, because of panic, because of loss of any market rationale because of unprecedented volumes of sales, pushing the price to far below where it really would be in any normal situation, if you are regularly investing in the stock market every single month, for example, these months can Be some of the most lucrative some of the most profitable in your whole, investing career. You can buy stocks at a fraction of their real fundamental value for no reason at all.

I've seen people make huge amounts of money by buying in at these points, while everybody else is panicking, while everyone else is taking the money out of the stock market. Instead of putting it back in and some people will tell you that to take advantage of these crashes, it makes sense to sell out of your positions to the top and then use that cash to invest at the bottom. Now remember what i told you earlier: it is almost impossible to tell when the right time to cash out is or definitely when at the right time to buy back in is, and if the stock market goes back up before dropping you might never be able to Buy in at the price that you cashed out at in april 1995, the stock market was up over 200 percent in a huge bull run, and if you sold out, then, when everyone thought that it was already massively overvalued, you would miss out on a further 150 Growth before the eventual dot-com crash happened, and even after that.com crash and even after the following financial crash, the very bottom after those would still be higher than the point at which you sold. You would never be able to use your cash to buy back into the market at a lower price.

Now. The next really important thing to do is to be incredibly picky very selective with your investments. This is a point that is very often overlooked, and i don't hear many people talk about. It is also something that most people find very difficult to do and many just don't feel the confidence or have the knowledge to do it.

When you anticipate the market crashing or when it begins going down, you can go and begin investing on that downturn and waiting for the overall market to regain its losses and that's what most people are going to be doing, and that's probably the right thing for most People and that will work, but in a major market crash, the recovery can take a lot of time, sometimes many many years to recover. Some companies, though, will recover much more quickly, and these usually won't be the robust, stable revenue dividend paying types of companies. The sort of companies that can bounce back quickly will be the hyper growth stocks, especially if they are in the industry that gets hit particularly hard. During the crash and the problem with these types of companies is that while some of them will bounce back, there will be plenty of others that will not and will crash and burn during the crash, and that makes picking the right ones very, very difficult.

But although a lot of people will be talking about the safe and secure robust recovery stocks, i personally tend to go the of the other way. I want to focus on companies that are in industries that are exploding where that rate of change will not really be affected by the crash. I also want the company within the industry to be a major innovator and a major disruptor within that industry and, if possible, i also would like that company to have a relatively strong balance sheet with a massive bucket load of cash. History shows that these sorts of companies can do incredibly well during a market crash, while the stock market took 13 years to recover from the dot-com bubble apple did it in less than four years.

They were the innovator within the very fast growing exploding, personal computing and laptop industry at the time. Apple were also the forefront of the mobile tech innovation space just before the financial crash happened and their share price recovered in just two years. While the market took three times longer and now for the crucial bit when everything else is going south, when the markets are crashing and the prognosis is bleak, one thing that you absolutely must do is to put yourself first focus on your own personal revenue. Focus on earning cash: don't waste your time.

Reading the news and obsessing over how bad everything is. Your primary objective should be to focus on revenue because, as with any company p, l metrics are great and they can be a great indicator of your future wealth. But cash flow is what really counts when things get tough, if you have money coming in, they can pay your bills, put food on your table and support your family. Everything else, including your investment portfolio, is secondary.

Anyone can lose their job during a severe financial crash, including you so brush up on what happens in your industry brush up on what other opportunities it might be and be ready. If the worst thing was to happen - and you find yourself out of work, do what you need get on your bike and act really fast to go and secure another job. Everything else can wait if you can build a side hustle before, during or even after. The crash that can help you make ends meet, earn a little bit extra, a few hundred dollars extra, that's even better the more different sources of revenue you have the easier it will be to write that wave when it arrives now.

I hope you guys found this useful. If you did, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later,.