Market Crash Survival Tips: Key Takeaways
- Will the stock market crash in 2022?
- How to learn from the past — from the stock market crash of 1929 to the crypto crash of 2021 and other warning signs…
- 8 traders share tips for surviving and thriving during downtrending markets.
Will the stock market crash in 2022? Wrong question…
Here’s a better question for traders: Are you prepared for a big market crash?
Market crashes are like natural disasters — inevitable, unstoppable, and unpredictable. You can never tell exactly when they’re going to happen. Just like death and taxes, you can be certain that the market does NOT always go straight up.
However, with the recent crypto crash in 2021, high inflation (ninja inflation), and the current housing bubble, there’s reason to believe there could be a stock market crash coming in 2022. You must learn to adapt, read the room, and change your trading strategy when needed. Here, 8 top traders weigh in on their top strategies for finding the best trades during a market crash.
- Bohen’s Take
- Bryce’s Take
- Matt’s Take
- Jack’s Take
- Kyle’s Take
- Mariana’s Take
- Huddie’s Take
- Tim Sykes’ Take
Even if there isn’t a stock market crash soon, it’ll inevitably happen sooner or later. As a trader, it pays to be prepared. Read on and learn!
Table of Contents
- 1 Preparing For a Big Market Crash: 8 Top Traders Weigh In
- 1.1 Stock Market Crash 2022: Bohen’s Take
- 1.2 Stock Market Crash 2022: Bryce’s Take
- 1.3 Stock Market Crash 2022: Matt’s Take
- 1.4 Stock Market Crash 2022: Jack’s Take
- 1.5 Stock Market Crash 2022: Kyle’s Take
- 1.6 Stock Market Crash 2022: Mariana’s Take
- 1.7 Stock Market Crash 2022: Huddie’s Take
- 1.8 Stock Market Crash 2022: Tim Sykes’ Take
- 2 Don’t Crash and Burn
- 3 One Platform. One System. Every Tool
Preparing For a Big Market Crash: 8 Top Traders Weigh In
No need to live in a trading bunker. These smart tips from top traders will help you stay safe in the face of a market crash.
Need a refresher on some of history’s biggest crashes, like the stock market crash of 1929 and the financial crash of 2008? Read more here.
Stock Market Crash 2022: Bohen’s Take
I’m no Chicken Little. You’ll never hear me crying ‘the sky is falling!’ when the market’s downtrending.
There’s always something to trade.
But if you want to stay safe, you must stack as many factors as you can in your favor.
In this post, I detail my process for evaluating a stock. It must check most if not all of the boxes to get me into the trade. If it doesn’t, I know I’m probably feeling FOMO and there might not be a good enough reason to trade.
Also, a market crash is not the time to throw a bunch of stuff at the wall to see what sticks.
It’s a time to get laser-focused on your top setups. For new traders, I strongly suggest two specific patterns.
Finally, remember that sometimes the best trade is no trade.
Don’t force it. If there’s nothing there, walk away. Use your time to learn, improve, and prepare for when the market turns around.
Stock Market Crash 2022: Bryce’s Take
If that happens, I’ll size down and be more selective with my setups. I’ll also withdraw money from my account so I have less money to trade with. That’s how I’ll manage risk.
If you’re a newer trader who’s working to find consistency, study more. Go through video lessons, study charts of former runners, and journal what you see.
And if you’re a consistently profitable trader, maybe take time to enjoy life outside of trading. Of course, experienced traders can always study up too.
Stock Market Crash 2022: Matt’s Take
Hey. It’s Matt Monaco. Will a crash come? It’s hard to say. The markets have been strange for a while. The frenzy and volume we saw in late-2020 and early-2021 have died down.
Yes, there are still opportunities. But be ready to adapt to anything. As for my advice on how to handle a bear market? Let’s break it down…
- Cash is king. Be quick in your trades. Cut losses quickly and take small gains.
- You don’t have to trade every day. Wait for your best setups. I don’t care what other people are doing. Remember, trading is a game of you vs. the market — not you vs. some trader on Twitter.
- Be willing to adapt. Short selling isn’t the worst idea when the market sentiment is bad. Just be sure to go in prepared.
Stock Market Crash 2022: Jack’s Take
Jack here. You can’t predict what will happen.
For example, companies come out with PRs and news releases all the time. You have no idea how the market will react to that news. Good news could tank a stock if people bought in anticipation of the news. By the time the news comes out, there aren’t any more buyers.
The overall markets are even harder to predict. To me, it looks like we’ll see some sort of crash because of how messed up things are right now. I suggest being flat when the market starts to look toppy.
I’m waiting to see larger volume on the SPY with it getting to the downside, then I’ll react.
A few people have asked which patterns I’ll likely trade in a crash … It’s more about patterns I’m likely to NOT trade. There probably won’t be a lot of breakouts. But I’ll still look for opportunities with hyped stocks.
If the market crashes, be OK with sitting on your hands. Realize it’s a scary time — so trade scared. There are times to trade scared and times to trade aggressively. If the market crashes, I want to trade scared.
Stock Market Crash 2022: Kyle’s Take
Hey. It’s Kyle Willams. I think a more serious market correction or crash is not a matter of if, but when … It’s not because I’m some genius but because that’s how healthy market cycles go.
I think a lot of people make the mistake of thinking that the market not pulling back is a good thing. In many ways, that’s unhealthy. It’s healthier if we go through some kind of serious correction or readjustment on the economy, in the markets, and in assets.
If our current financial system implodes because we take on too much debt, a new system will take its place.
So far, crypto is in a good position to potentially be that.
Other than that, I’m not too worried or looking too seriously into a potential crash. I’d rather react if it does happen than stress about it now.
Stock Market Crash 2022: Mariana’s Take
Hi. Mari here. How do I plan to trade if the market crashes? First off, I won’t panic. This is key. Whatever happens, relax. A down market won’t last forever.
And most of all, I want to be prepared. Here’s what I recommend for traders:
- Size down: I honed my strategies taking small positions until I felt comfortable and confident sizing up. It’s not only OK to size down when markets are uncertain or you’re adapting to new plays — it’s smart.
- Discipline: This is always important, but especially so when markets are choppy or slow. Sykes kind of poked fun at Jack and me for how we stayed disciplined while in Italy, but we avoided taking risky plays.
- Tight risk: Risk management is how you stay in the game. Cut losses quickly and only trade your best setups.
- Take singles: We hear and say it a lot for a reason: singles add up.
- Know it’s not forever: The market constantly changes. Take it all in stride and prepare for whatever’s next.
Stock Market Crash 2022: Huddie’s Take
Hey, it’s Huddie. If the market crashes in 2022, it’ll just be another day at the office for me.
I think weak overall markets will result in fewer multi-day runners. And I expect more pops will lead to fades. I’ll continue to look for singles until the markets dictate otherwise.
My advice for new traders: If you’ve never experienced a slow market — hone in on your criteria. Trade A+ bread-and-butter patterns only.
“Monopoly money” plays will only lead to slowly bleeding your account and eventual frustration. What you could get away with in 2020 or 2021 might not be the same in 2022. Especially if we have a real recession and downtrending market, not just a few days of volatility.
Stock Market Crash 2022: Tim Sykes’ Take
Tim Sykes here. We’re due for a crash — this bubble is getting very frothy and risky. We’ve seen huge run-ups in many different assets. Many speculative assets, like crypto, soared further than I ever anticipated.
Remember, anything that goes parabolic — especially in times of excessive liquidity — eventually comes down. SO much of the buying over the past 20 months was due to stimulus checks or dumb money.
Robinhood Markets, Inc. (NASDAQ: HOOD) is almost like a barometer…
Uneducated idiots are trading less. They have less money. Now they’re losing instead of winning like they did early in the stimulus-check-funded bubble. That’s bad for Robinhood’s business.
Will there be a big crash? I don’t know. But I do know…
- You don’t have to hold through big drops.
- You don’t have to have diamond hands.
- YOLO is NOT a means to lasting wealth.
Many people became paper millionaires the past year, then lost most of it. It’s crazy. If you’re good enough to do it, why not take something off the table? You can build back up again.
Also, don’t listen to unethical promoters who say, “Only weak hands sell.” You don’t have to listen to anyone. If you made money during the bubble, take some off the table.
All my millionaire students and I lock in profits. We’re not unrealized millionaires. We’re realized-gains millionaires. There’s a difference. Have discipline — don’t fall for the BS.
Finally, if there is a big crash, be grateful. Study more. If you want to stay in the game for the long run, you need to experience different markets.
Don’t Crash and Burn
Remember: there are always opportunities in the stock market. Yes, they might look different during a market crash than during the early-2021 hot market.
It’s all about adapting and reacting instead of anticipating.
- Be ready to size down and tighten your risk management.
- Like Matt says, cash is king. It’s OK to not trade! Walk away or study up instead.
- The best traders learn to find opportunities in ANY market. Be willing to reassess and adapt. Test new strategies and tweak as needed.
- Journal everything! How else will you know what works?
- Healthy markets don’t just go up. The cyclical nature of ebb and flow is GOOD. Embrace and learn to adapt to the flow.
Keep your trading education going!
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What’s your favorite stock market crash survival tip? Drop a comment below!