Is the stock market crashing? Are you going to lose all of your money in 2022? 2022 has definitely proven to be a very uncertain year. So far. This is the worst january. I've ever seen in a stock market at the lows of the year near the end of january.

The s p 500 was down 11 and the nasdaq down 16. Adding to that the uncertainty with the interest rate hikes for the rest of the year, high inflation supply chain disruptions as a result of the pandemic and potential global war looming in the distance. This is definitely shaping up to be a very uncertain and fearful year, and you know what the number one thing: the stock market hates the most uncertainty along with fear and panic. The market looks really weak right now and maybe you're wondering if you're going to lose your retirement, your house or your lamborghini well i'll, never have to worry about that because um, i don't have one in this video we're going to discuss, is the stock market going To crash, how exactly can traders and investors like you and i protect our money during this downturn and, most importantly, how to profit in a bear market? This is going to be a very crucial video to watch because, yes, while it was very easy to make money during a crazy bullish, hot market, we had in 2020 and 2021, unfortunately most people are going to lose them all in 2022.

So don't be that person and remember to smash the like button to turn on the money printing machine, because we could use some of that free money right now, 2022 has been a down trending market. So far. This is the worst january. I've ever seen in a stock market, we are finally seeing a small rebound right now at the end of february.

In comparison to the january of this year, the worst performance in the stock market in the last 20 years was october and november of 2008, with a 38 drop followed by march 2020, when the covet pandemic was at its worst 30 percent decline. Seeing this kind of performance at just the start of the year has all of us thinking is this about to get a lot worse. Most of the traders and investors actively participating in the market today have never seen a bear market, so i think it's the perfect time to take a leisurely walk down the memory lane here is a quick look at the history of stock market crashes. First, there's the infamous black monday of 1987 market crash that represented the greatest one-day percentage decline in the u.s stock market's history.

Next is a dot-com bubble of 2000. When overvalued internet-based companies went burst. They plummeted the index by 76 from 2001 until the end of 2002.. Many of the big tech companies, such as amazon apple microsoft, survived, but you can't say the same for the other speculative names like to pets.com fast forward.

Just eight years later we had the financial crisis of 2008 over leveraged housing markets in the united states started collapsing. When mortgage default rates started rising and many unqualified home buyers, weren't able to make the payments, the financial crisis led by the subprime mortgage loans were the true events in which the movie, the big short, was based on by the way, if you didn't know that already This is one of my favorite movies of all time. Tell me the difference between stupid and illegal and i'll. Have my wife's brother arrested.

That was fine during the 2008 financial crisis, the stock market sold off and did not find the bottom until early 2009. By then, the market has dropped 50 percent from the peak, and it took four full years for the stock market to really recover. It's quite amazing that, even though this event is more than 10 years ago, the reminisce of the financial crisis is still very fresh for many people today, then. Finally, we have the crash of 2020 just two years ago.

This one should be fresh on everyone's minds as the pandemic spread worldwide, disrupting global trades travel and many people lost their jobs and were forced to quarantine at home. The market sold off 30 starting in february all the way to mid-march. However, unlike the prior stock market crashes, we just talked about the most recent crash in 2020, recovered extremely quickly, with a federal reserve, slashing interest rates back to almost zero percent and jerome powell, bringing in the infinite money printing machine. We saw stocks back at previous old-time highs in a matter of two or three months, which led many traders and investors to wonder.

Did the fed really just postpone a market decline that was supposed to happen? Was the stimulus really just a band-aid trying to cover the surface of the problem and are we now potentially dealing with all the consequences just two years later, due to the excessive stimulus injected into the economy, the rate of inflation right now is running at seven percent. In the united states, which is the largest year-over-year increase since 1982, in order to combat the high inflation rate, the fed signaled that they will slowly increase interest rates for the rest of 2022 and the market is currently pricing in at least three interest rate hikes. And, according to the greatest investor of all time, the oracle of omaha interest rates are like the gravity in valuations. If interest rates are nothing, values can be almost infinite if interest rates are extremely high.

That's a huge gravitational pull on values and, on top of the rising interest rate, worries, there's a fear of war with russia, potentially invading ukraine. The rising oil prices at a 7 year high and historically speaking, anytime oil prices, spiked up sharply it's preceding a major recession. This was true in 1990, 1999 and 2008.. With all this uncertainty, how exactly should we traders or investors, protect ourselves from a looming stock market crash because sure it's easy to say, buy the dip and put it on a t-shirt? But what happens when the dips just keep on dipping? How do we make sure that we don't lose money but actually profit from this stock market crash? Instead, i think to answer the serious question.

First of all, you have to think about whether you are a trader or an investor. First for traders, whether you are swing trading or day trading like i am the most important practice to follow in a current volatile environment right now is risk management. Yes, i know this topic does not sound sexy or fun, but it's the truth. Many people threw risk management out of the window in 2021, but you certainly cannot survive this year doing the same thing, because ultimately, nobody knows exactly.

When is the stock market going to crash? Not even michael bury, while michael bury's scion capital had enough liquidity to hold through the pain for two or three years. You and i, the little traders without little trading accounts, probably will get a phone call. First, no, not the sort of phone call you want when waiting for your date to kill you back, i'm talking about margin call and to avoid that call whether you are a loan, biased or short, biased trader. The most important thing to follow is risk management and predetermining.

Your stops, if you are loan, biased, use, key support areas to risk off when buying the dip and cut your risk tight. If a support breaks down with a market downturn and very important to know if you're long, biased the breakout success rates are extremely low right now, so that's why, rather than buying momentum breakouts, i would recommend loneliness support confirmations instead. Trust me just changing this one trade entry strategy will save you a lot of headaches this year. On the other hand, if you are short, biased sure, on the surface, the current outlook of the market looks very weak right now.

We all know that right. It seems like it would be very easy to just print money every day, just shorting the market, you just click short and amazon prime - will just deliver a lambo straight to your door right wrong. Just a few weeks ago, when the market was all doom and gloom, the nasdaq dropping off a cliff amd, close to 100 tesla sub 800 and madrina stock at the lows around 150, where it deserves to be and much lower. I flipping hate that stock.

Not only did it mess up my trading account last year. Their vaccine also put me in bed for the entire weekend. Okay, sorry, i got a little bit too passionate about my all-time biggest loss in 2021. anyways.

My point is, just as the market was piled on by short sellers and sky-high, put option activities the market actually rallied and that bounce was naughty to say the least shorting the market looks easy until your face get ripped off. The best course of action is to have an actual, solid trading plan that consists of short entries, look for potential profit target and know your risk area, so, whether it's a profit, a loss or even break. Even everything is calculated before you enter the trade. If you don't know the answer of where to stop out or take profit, i hate to break it to you.

That means you don't have a trade again. I must emphasize. What we just talked about is the simplest trading plan. You can do as a trader.

Yet ninety percent of the people don't do this. If you want to learn more about trade planning and risk management, i go over that in detail in the humble trader academy and you can find the link to that below as a day trader. This kind of market volatility has been amazing because it provides us a lot of range to the upside or the downside. This is truly a traders market where risk and planning matters above all and if you can actually follow the tips we just talked about, while long-term investors are crying about their year-to-date performance.

This is the market for traders to shine and still profit from the short-term volatility. Now, if you are an investor, not a trader, you should be investing in quality companies that you truly believe in for the long-term growth. I would first evaluate whether these investments are fundamentally sound and if they are, what you should do with your investments are absolutely nothing. Even though we know the market is pricing in economic downturns ahead and growth, stocks are in the toilet.

Investors need to remember that time in the market, be it timing. The market and my opinion is instead of trying to sell your long-term investments now and thinking to re-buy back later on. Investors should keep some dry powder on the side and buy the dip on your favorite stocks. As there are many discounts coming up soon.

Warren buffett said to be fearful when others are greedy and be greedy when others are fearful and right now. Fear and panic in the market is definitely increasing every single day. As for investors, please don't let a short-term price drop. Spook you out of quality long-term investments.

Unless the fundamentals of the companies have changed, there is no reason to panic sell. Hopefully you find the tips in this video helpful for traders or investors if you enjoyed the video, please remember to drop a like at the bottom of the video. Thank you guys. So much for watching as always, i'm the humble trader and i'll see you guys next time you.