How to survive a stock market crash

When the Dow drops significantly people panic. They talk about all the money they lost. They get worried. Then in the moment of panic they make horrible destructive decisions. Well stop panicking. Panic will lose you money.

Difficulty: Easy

Instructions

Things You'll Need:

• A clear unemotional mind

1. 
    

   First off stop panicking. When you panic you make the wrong decisions one hundred percent of the time.

2. 
    

   Before you sell any of the stocks you own take a good look at the companies. Not the stock prices. Not the percentage of price drop. The company itself. Ask questions. Is the company generally strong? Has it been in business for a long time? Does it sell products and/or services that are used on a daily basis.

3. 
    

   If the company is generally strong you might want to consider buying more. I'm going to dare to say that a stock decline and/or crash is the best time to make a lot of money. Its at this time that you look for some great bargains. Its almost like wall street just went on sale.

4. Look at the companies competition to see how they are doing. Are they doing worse than your company? Its possible the company you own will take this time to buy up some other companies. That's great news for you. That's why during a crash you see companies buying other companies. They know that they can buy great companies that are having difficulty freeing up cash.

5. 
    

   I started this how to with telling you to not panic. I'll end it with telling you not to panic. Remember there are two types of losses. Realized and Unrealized loss. You don't actually loss money until you sell. Your supposed to be in it for the long term.