5 Essential Tips for Navigating Stock Market Crashes

Here are the only five things you will ever need to remember for when the stock market is crashing and everyone around you is losing their minds.

I'm Tyler, a former financial advisor and portfolio manager, and now I make financial content for free so that you don't have to pay for it.

1. You Have Not Lost Any Money

Your assets are worth less today than they were yesterday.

2. Assets on Sale

If you liked those assets yesterday, congratulations, they're on sale today.

3. Understanding Your Risk Tolerance

If you sold your assets yesterday, also congratulations, you just learned all that you will ever need to know about your actual risk tolerance level, and now you can invest accordingly and more appropriately for the rest of your life.

4. Focus on the Long Term

To focus on any one day's performance is the single biggest mistake you can make as a rookie investor when it comes to building long-term wealth. The market has not crashed. As of August 6th, 2024, the market is up 10% year-to-date, and the S&P 500 has notched over 30 all-time highs so far in 2024. So when in doubt, zoom out.

5. Distinguishing the Market from the Economy

The stock market is not the economy. The stock market is nothing more than our collective consumer sentiment about the economy. It is a fickle ding-dong, just like every one of us, and all it will ever reflect back to us is our own greed and our own fear.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

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