Strategies And Preparation For Stock Market Crash

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Learn what to do before and after stock market crash and how to take benefit of market crashes.

Stock Market Crash is of Two Types:

1. Sudden Bad News Overnight Market Crash
2. Good or Bad News and Long Time Market Crash or Up Move

I hope the way I have named it, the meaning is quite clear and obvious. The first one is any Terror Attack e.g. 9/11 attacks, Natural Calamity e.g. Tsunami or Major Earth Quake, Financial Corruption in a Big Company, e.g. Lehman Brothers Company Bankruptcy crashed stock markets all over the world for more than one year, and brought one of the biggest financial crisis & recession period in the whole world for 1 and half years.

Here is the link for more details on Lehman Brothers Company Bankruptcy: https://en.wikipedia.org/wiki/Bankruptcy_of_Lehman_Brothers

On September 15, 2008, Lehman Brothers filed for bankruptcy. With $639 billion in assets and $619 billion in debt, Lehman’s bankruptcy filing was the largest in history, as its assets far surpassed those of previous bankrupt giants such as WorldCom and Enron. Lehman was the fourth-largest U.S. investment bank at the time of its collapse, with 25,000 employees worldwide.

Lehman’s demise also made it the largest victim of the U.S. subprime mortgage-induced financial crisis that swept through global financial markets in 2008. Lehman’s collapse was a seminal event that greatly intensified the 2008 crisis and contributed to the erosion of close to $10 trillion in market capitalization from global equity markets in October 2008, the biggest monthly decline on record at the time.

Source: http://www.investopedia.com/articles/economics/09/lehman-brothers-collapse.asp

Another example is from India which I think many generations will remember – The Satyam Crash. Read this: Satyam’s fall: From Rs 542 per share to Rs 58

Read Full story of the Satyam Crash: http://www.financialexpress.com/india-news/satyam-computer-the-rise-and-fall-of-ramalinga-raju/62281/

The Lehman Brothers & Satyam Crash falls in the first and the second category both. Overnight the markets will crash and keep the crash continuing for a long time.

But natural calamity and terror attacks fall under the first category. Stock markets will open big gap down and then from next day onward start to recover.

News like some party election win like recently in UP, and good performance by major companies may push up or down 200-300 points the stock markets and they markets will stabilize. These fall under the first category.

The first category id not a big issue and can be managed with well planned hedged strategies, but the second one is where lot of planning is required.

Continue reading on stock market crash more on how to be well prepared for stock market crash.

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | About Me | Conservative Option Course
Find 200+ testimonials of my course:
What Traders Say About This Course

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Traditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>