DON'T Make This Mistake When Stocks Crash!

when the market starts to crash that's when emotions are at their highest people see their portfolios declining the news is hyping up the fear and it can feel like absolute chaos what happens is most people get scared they make an irrational decision or simply just don't know what to do so what happens next most people end up panic selling and this is the worst thing you can do I love this chart it goes all the way back to 1950 and shows the stock market and all these terrible events that happened in that time and guys as you know this isn't anywhere close this is probably less than 1% of the actual terrible events that happened in that time no matter what president was no matter what event it happened what happened in the stock market it kept going up I say this quote because it's so brilliant Morgan howel says every past crash and bare Market looks like an opportunity every future one looks like a risk guys they're all opportunities Peter Lynch always says everyone has the power to buy stocks but not everyone has a stomach to buy stocks because during these bad times when the world feels like it's falling apart you go back to 2020 guys look at Co right here Co literally the world thought everything was going to shut down markets crashed 40% in one month what could be more fearful than that I'll tell you the great financial crisis we thought Banks were completely shut down and people wouldn't be able to get their money how about 911 now 911 occurred after the market started to crash but guys we were under attack by Foreign entities and you were sitting there worried is this the start of something even bigger and guess what happens the markets end up better in the long run why because the economies end up better the world GDP keeps getting better this is what happens and this is what you need to be able to do managing your emotions a big part of it is being able to come back to videos like this and remember all of this look back at these down times look at the times that probably felt the scariest and guess what in order for these big Falls to happen it has to be unknown and it has to be scary or else that would not happen because it's when people are trying to exit the theater everyone's trying to exit the fire exit in the theater but you can't get out fast enough the best thing to do is buying more yes that sounds hard to do but buying more is the best thing to do but if you can't buy more then don't sell and save up as much as you can to buy more here is why you need to buy more if markets are falling and you don't buy more because you're worried everything's going to go to zero if everything does go to zero let me ask you a question what does it all matter anyhow what's your money going to matter anyhow it's going to be completely irrelevant so you might as well buy more and guess what markets aren't going to zero there will be a point when the last seller has sold because there's still lots of people out there who need to have their money invested and they can't touch it through 401ks IAS and things like that they're are institutional money out there that's going to stay in stocks so it's not going to go to zero but what your job to do is not to try to time the bottom it's to buy more as it's getting cheaper is that difficult 100% it's tough to sit there and hear the news out there you go to any sort of News website that's there all the time markets are crashing markets doing this look at what happened just the other day in Japan the markets went down 10% 7% next day up 10% it was crazy out there these things happen two days ago it was financial markets are going are crashing everything's terrible now okay we're good now come on guys is that rational is that clearly not a rational thing of course not so your job is sit there and remove yourself from the emotion of it all how do you do that for one thing maybe don't even open your brokerage account don't turn the news on also be part of a community I I hate to talk about this so much but our community is absolutely incredible yesterday when markets were crashing the comments there were absolutely awesome people like red days are awesome this is what we're waiting for this is what we love because guys it's amazing in the world of investing it's the only thing in the world that people hate when it goes on sale when they flee the department store when the sales occur when you go to your favorite department store your favorite store and you see sales do you run away that's what's happening with stocks especially if you're in lowcost ETFs and if you have individual companies attached to those lowcost ETFs I hope you have individual companies that have good balance sheets growing and staying power those are just opportunities to buy more because you'll always hear about any company that's Fallen a lot in price the company's dead past its prime I've heard it a thousand times and the only time I can really remember what actually was true was blackberry and guess what Blackberry is still around today that's the amazing part and that one literally got wiped out but if you don't want to pick individual stocks that's why dollar cost averaging works so well it's all about repeating these things in your head all the time the Market's going to go up like this over time in terms of value but the price is going to do this when we're at this point Everything feels Rosy everything's great nothing can go wrong when you're here nothing go right the world's coming to an end this happens time and time again and it'll keep happening until the day you die guess what there will be Corrections almost every year at some point and a correction is defined by a 10% drop in stock and a bare Market's 20% or more from the high there will be crashes at some point in your life many times in your life from here on out get used to it expect it don't sit there and change your entire world because of it look at it as a buying opportunity and as you dollar cost average if you have the stomach to buy more when stocks are undervalued you can beat the market but worst case if you buy equally along the way you're going to match the market that's what's so great about the S&P 500 ETFs like spy and vo you don't have to worry about anything in the companies what they're doing anything like that let these indices just manage themselves to the ETF and you will match the market over long periods of time how valuable is that let me show you guys you may have noticed that if you go to everything money.com we only have a limited number of daily spots for our community and software and the reason for that is the software as it exists today currently includes everything we have to offer for stocks retirement and real estate now we have four YouTube channels and behind the scenes we're making some big changes as we continue to expand these offers all of these right here are going to be separated very soon the everything offer is absolutely going away you may remember if you've been watching us since we started that I built the software selfishly for myself and my team so that we could use it to constantly make better decisions in all aspects of my money but as our Channel community have grown immensely since then it's becoming less about me and more about how I can better serve you in the community members so the good news is we have not made these changes yet so if you join today you'll be grandfathered in for life with all the data and all the tools we have made and every future tool that we do make so you'll get everything here for life no matter what we change and any future tool we make you get it along the way you'll get all of it and keep your price forever this is the best deal we've ever offered so if you're really serious about making better financial decisions increasing your returns and sleeping better at night click the link in the description below to get access to everything we have to offer before we make our changes and I'm very confident it will be the best decision you've made all year here is why you need a dollar cost average here's why you need to manage your emotions better guys from 2001 to 2020 here are the turns in different asset classes REITs Equity small Emerging Market Equity small cap high yield S&P 500 with dividends at about 7.5% per year average investor 2.9% guys this is exactly why you need to do this dollar cost average because everybody buys and sells at the wrong time this is this Cuts your return to barely beating inflation over that 20-year period you've worked too hard you've put too much labor into what you do so you can retire someday to get this this is why following this channel this is why being part of the community this is why having this mindset repeated over and over to self brainwash yourself is so important this is scary I didn't even realize this for the longest time look how different this is and if you don't think this is a big difference over a 20-year period you basically don't even double your money here but over here 7 and a half% you take your money by almost 5x that's the difference and that's only 20 years you're going to spend 40 years working before you retire so how do do I plan a profit from this upcoming recession which will probably lead to a downturn I'm going to put the pedal to the metal I'm going to buy more stocks I'm going to turn off my emotions and say what would I do if I were looking back on this 10 20 years from now what's the opportunity I would see which companies have great balance sheets have staying power just have a temporary decline in revenue or profit waiting for the economy to turn around I might even buy some lowcost ETFs if I don't know exactly which companies to buy I'll just buy S&P and QQQ why because I'm here just to make money at a good return if I can't pick an individual stock or I've maxed out my individual stocks I will buy ETFs I'm not above that it's a great way to make a lot of money long term might as well do it this is an incredible difference guys look at Cash you've barely outdone cash yeah it's double but it's one and a half percent difference this difference this difference is 4.5% 4.6% difference incredible almost triple here so if you want to be a better investor it's not just about getting higher returns it's about staying in when things are tough that's what's going to make you a great investor that's going to make it possible for you to retire on time with tons of money so guys you have two options from here you can either watch the next video on how I plan to profit from the upcoming recession or if you're more interested in learning my process for buying companies watch this next video on the 33 companies that I want to own thank you for your time