What to do during a market crash?

[noirua]

Would be pleased to know why you chose US Bonds as a defensive investment (so inferred). During the crash from 1929 to 33 even Government Bonds became virtually worthless.

Hi, Mainly because I think the US Dollar will gain strength against the Aussie Dollar, Euro and British Pound. Interest rates are set to move lower over the next 12 months in the US. (US Bonds rose between 0.2% and 0.5% on Friday alone and the US Dollar rose between 0.4% and 0.7% against the Aussie, Euro and BP) Interesting comments about US Bonds which I was not aware of, still, we live and learn.

 

[noirua]

Buffet is not in the slightest bit interested in the daily gyrations of the market. As always he will be looking for stocks that are under-priced relative to their intrinsic value.

Warren Buffet is still listed third richest person in the world with US$52 billion, behind Bill Gates and Carlos "Slim" Helu. It must be difficult to sell with his large exposure, maybe that's why he says, hold for ever.

 

[dhukka]

I suppose this is my point. ASF is not all about tech analysis and day trading, there are 'investors' here too. I, for one, arrived here as an 'investor', but realised some trading was required in the short term to make a living. I think the 'investors' out there may be a little confused with the doom and gloom prognosis, although I'm leaning that way myself.

Or, am I right off the rails? I think there might be a balance... Or, am I going to lose my shirt?

(the noise out there is making it very hard to see clearly!)

Kennas you sound like the one who is confused. True investors wouldn't be confused at all. This board is dominated by technical analysis and traders not investors and if you look at the threads that show the most panic I think you'll find the posters are mainly traders.

 

[CFD]

I think long term investors, by investing for the long term will go through many periods when the market will gain 2 - 3% in 2 or 3 days and also many times when the market will lose the same in 1 or 2 days.

Over the longer term there are more of these up days than down days. If you did not believe this then you would not be a long term investor.

 

[tech/a]

How do these relate to Techtrader?

I'm guessing Techtrader covers...

(1) yes
(2) yes
(3) no
(4) no
(5) upto the trader
(6) not sure?

AND in response to Kenna's

Techtrader as posted on "The Chartist' is an exercise in a long term trading System. As such it will be traded until it "blows up" (Trades outside its blueprint ).
Some including myself have adopted it and hybrids of it as a longterm trading method.
I personally have taken the decision to close ALL positions in my Longterm methods at Trading below 6170 on the XJO.
This is clearly NOT within the system guidelines.
So why did I do it.

(1) Firstly a 22% D/D on my systems (The average maxD/D found in testing) would mean a very substantial capital loss on unrealised profit for me personally,I dont wish to give that amount back.

(2) My analysis and those of some of my respected peers indicate that at this time it is highly likely that this COULD occur. If I'm wrong I lose a little potential profit,if I'm right then I minimise my actual losses.

(3) The decision was made on a majority of stocks which have been held over 12 mths and in July well away from tax time,something I can defer for a maximum period.

I maybe right OR wrong,but for me in my circumstances I figure regardless of what happens in the markets this decision I have made puts me in the least risk catagory.

I still hold short term trades and have 4 open currently,adopting my own advice above.

 

[prana]

I regard myself an investor.

I buy when traders give up their positions at ridiculous prices, and I try and disregard the reds in my portfolio due to the irrationality - I own businesses. For me, it really is "When you cry, you buy - when you laugh, becareful" I don't sell unless the company has lied about something, or management gives misguidance or something drastic has happened that changes the underlying business proceeds, or it was a cyclical play to begin with.

Traders gain from momentum, investors build when the momentum is in the wrong direction, that's how I see it (pretty controversial first post, sorry)

 

[nioka]

Neither of the answers are correct in all situations. Some shares I have sold some I hold and some I bought. One size does not fit all. Only a lemming has one answer.

 

[Garpal Gumnut]

During a proper crash, that is when all is lost and even Rupert M is scrabbling to save himself as he was in the eighties, go to the following link

https://www.aussiestockforums.com/forums/showthread.php?t=6781

 

[son of baglimit]

ive managed to sell all positions (except 1, no prizes for guessing) at or near record highs (no resources) and now sit back and wait for this "slide" to run its course. hopefully the central banks, economists etc out there stop playing with the problems, let the markets determine the values, so we can find the true base to begin building up our portfolios again. the longer they play with rescue packages, the longer recovery will take. also moved all super out of shares and into boring but still earning bonds for the same reason.

the market aint going anywhere for sometime.