this is not financial advice but buckle up my friends because we are going to talk about today
the stock market crash of 2021. i'm gonna talk about what you could and should do
to prepare for any stock market class not just in 2021 but beyond i've even received just recently
some comments here on the channel that have made me just think and say stop hold up we need to talk
if we could probably agree on one thing it's that the stock market pros are very similar to
a meteorologist for the weather they tend to be right about two percent of the time and wrong
like 98 of the time i don't know about you but uh that's how i've been feeling lately in fact funny
enough in a random stroke of good luck they even threw darts at a wall and based on the
way the darts landed they would buy into the stock well that outperformed the stock market
average by 27 percentage points in april 2019. so if darts being thrown at a wall does not shock
you about stock market projections i really don't know what will and that leads us to now
what should we do to prepare for a stock market crash the tips i'm going to share with you today
have helped me weather a few storms the 2008 crash the 2020 crash and a few others and that has
helped me lead myself to a 600 improvement in my stash app as well as owning over a couple thousand
dollars in my schwab account and i want to share with you what you need to know so that way you can
weather the storm should the stock market crash and how you can come out looking like a superstar
but don't be greedy make sure you tap that like button down below that helps youtube get this
video out to more people so we can give them tips so they can also avoid a stock market
crash in 2021 definitely appreciate it let's get right to it in what was the largest crash
since black tuesday of 1987 the dow nasdaq and s p 500 took a sharp nerve dive in march 2020 from
294231 on february 13th to on 18591 23rd 2020. shutdowns and fear really drove down this cost
and right here is where people started selling selling selling out of their shares because of
that fear and some people even sold and actually took a massive loss as a result of selling at the
time of the crash but check this out for just a second if we would have hold on through that storm
that happened in march and april of 2020 today the market now rebounded and even came back stronger
on january 13th 2021 showing us 31 60 47 on the dow jones so what was a dip in march and april of
2020 has now not only rebounded back to february 2020 but has even beat it the thing i have learned
is just being consistent and staying focused and let's not forget what warren buffett has said
and honestly if if i'm going to take advice from anybody it's going to be warren buffett because
the guy is worth billions of dollars and he says be fearful when people are greedy be greedy when
people are fearful this means when the market dips we buy in now i know a lot of people especially
back in 2020 they had a lot of issues because some people did get laid off they lost their job
very sad things and i feel very bad about that those people that did not lose their job though
this would have been a perfect buying opportunity and i'll tell you a quick story back in 2008 when
we had the last financial meltdown when lehman brothers and a few other the financial systems
crashed the housing market was on a dip everything was going completely out of control in fact they
call that period of time the great recession i didn't have a lot of money at the time and
i really wanted to get in i saw things like disney stock six flags and uh what was it at the
time ford really dropped in price significantly during this period of time and i thought you know
i would think something like disney's gonna bounce back i would think something like six flags would
would bounce back i bought like one share of disney and i bought like one share of ford
today they're up so much money compared to what it was back in 2008 now i only had enough money
to buy one share if i would have bought a significant amount i would have been in such
a great position here today and that was a period of time just like back in march 2020 where people
were absolutely scared they weren't sure there's a lot of uncertainty so people pull away from the
market thinking no this is the time to sell and get out and run away but i think that's actually
the opposite effect of what you want to do if you want to be successful in the stock market i think
a lot of us need to get out and myself included sometimes we get into this instant gratification
mindset and just recently with the game stop short squeeze that went on a lot of people were getting
into that because they saw an opportunity to get rich quick and guess what happened and
people bought in at that 200 or 300 plus price and then within a week it was back down to 90 or below
and some people lost a significant amount of money i even did a video on a youtuber who lost
eighty five thousand dollars by timing the market incorrectly with gamestop so if we can get out of
that timing the market and instant gratification mindset and start focusing on a consistent method
a consistent strategy we will actually find ourselves in a much better position than we would
have even if the stock market crashes i have three major rules that i follow in a stock market crash
first of all is only put money in that you can afford to lose and that's a pretty basic concept
if you only have 100 to put in and you need that 100 to afford next month's rent or you need it for
food to feed your family don't put that money into the stock market don't put that money into a get
rich quick stock number two is to invest in things that you understand there are a lot of things that
you know somebody could post up a video here on youtube and say hey this one's about to 10x you
got to get in this is a hot stock and you learn it's about dirt moving in southern california
you don't know anything about dirt moving or why they would be moving dirt you don't even
live in california so why would you invest in that stock now let's say you're interested in something
like cruise lines i really love going on cruises your boy is going to be going on a lot of cruises
so i trust and believe even with the shutdown of the cruise lines that they have a lot of
opportunity but most importantly i can understand what's going on because i'm so passionate about
them that's something that i would be interested in so i'm not going to go in and invest in that
dirt mining company in california i have no clue and if they make a wrong move and there's some
type of weird news story that comes up and i miss it i could totally lose all my money
because if i bought in at a share price of a hundred dollars and something weird happened with
that industry and it dropped down to two dollars a share yikes that kind of stinks whereas in the
cruise line i can understand okay here's what's going on i'm comfortable i'm cool i'm gonna buy
more in or i'm gonna just hold my shares whatever that would be because i understand what's going
on with that particular industry the third rule i have is do not freak out and sell let me give you
a great example let's say you buy a stock of xyz company now you own that share of stock that one
share of xyz is yours now sure it could drop to two dollars a share or it could go up to a hundred
dollars per share but no matter what the price is it's your share of stock some people have messaged
me here on youtube especially in the comments and uh they're thinking hey if the price goes down i'm
gonna own less and my my everything's going down i don't own that anymore and that's not really
the case you still earn your one share and i'm sure your portfolio value may go down in price
but no matter how much or how little it's worth you earn the share it's all yours
so think more for the long term don't freak out and sell just because you see the price going down
that is the complete opposite and it just drives me up a wall to see people do that because then i
think people start not trusting what's going on in investing they get nervous about the stock market
they feel it's too overwhelming they back away and they miss out on great opportunities now let
me give you some arguments you know when it comes down to a stock market crash you can never truly
understand and that's why i meant earlier when it comes down to throwing darts at the wall you don't
really understand if the stock market's going to go up down sideways inside down upside down
do circles or play dead dog you just never know the best thing to do is just to continue
on investing and yes it's very boring it's a very boring strategy to say i got rich by just putting
in money every week into the stock market and i don't care if it's up or down i don't really care
i don't even really spend time looking at what really is going on i focus more on the news of the
company and see what's going on that way just to see if they're innovating or maybe they're about
to call bankruptcy in that case i'm going to get out but you know if it's just a matter of the same
old same old i'm going to continue to invest and if something epic happens the stock market dips
down just like it did in march 2020 cool that means as i buy in and continue my consistency
my five dollars is gonna buy more than it did a month earlier pretty cool and then the next
month as it goes back up my five dollars might buy a little bit less but i'm continuing to put it in
it's a cycle around and around it goes and if you do that over a course of a period of time
you will see significant payoff my friend i just did a video and i was responding specifically
to gamestop i'll link it up above in the info card but what i do is i talk about near the end
of the video i talk about how if you would just invest consistently especially if you're younger
and you take advantage of the typical stock market growth of 10 on average you could stand to make
couple millions of dollars and in some cases in one of the examples it was six million dollars
just by simply investing money every month so find your way to make more income put that
income to work and you could be like retiring on a couple million dollars and you could call
yourself a millionaire so it doesn't matter if the stock market crashes oh well does it suck
yes do people lose their job unfortunately and that's very sad but the most important
thing is to not freak out and find yourself on the wrong end of the stock market spectrum if
you enjoyed the video give it a like make sure you subscribe and we'll see you next time [end]