{"id":13305,"date":"2024-08-16T06:28:08","date_gmt":"2024-08-16T06:28:08","guid":{"rendered":"https:\/\/www.vtmarkets.com\/blog\/?p=13305"},"modified":"2024-08-16T06:28:08","modified_gmt":"2024-08-16T06:28:08","slug":"3-ways-for-traders-to-profit-from-a-market-crash","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.net\/pl\/learn\/3-ways-for-traders-to-profit-from-a-market-crash\/","title":{"rendered":"3 ways for traders to profit from a market crash"},"content":{"rendered":"\n

If you want to understand why the markets are collapsing, read on to discover the reasons behind the recent Black Monday on Wall Street\u2014and how you can still earn a tidy sum during a market crash.<\/strong> <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

For those who have ever wondered when the next financial bubble might burst \u2013 it just did<\/a>. <\/p>\n\n\n\n

For one, if you saw how stocks ended last week and checked the global indexes last night, you can tell there’s a lot of fear in the markets<\/a> right now. 
 
Global markets have entered a\u202fperfect storm for a sell off.\u202f <\/p>\n\n\n\n

In case you missed it, here\u2019s what happened last Monday on Wall Street:\u202f<\/strong> <\/h1>\n\n\n\n

\u2022 The S&P 500 experienced its largest single-day decline since September 2022. <\/p>\n\n\n\n

\u2022 The Dow plummeted by over 1,000 points. <\/p>\n\n\n\n

\u2022 The Nasdaq 100 lost nearly $1 billion in market value. <\/p>\n\n\n\n

\u2022 The VIX, Wall Street’s Fear Gauge, reached levels last observed during the 2008 Financial Crisis and the 2020 pandemic. 
 
And that was only in the US. <\/p>\n\n\n\n

<\/p>\n\n\n

\n
\"\"<\/figure><\/div>\n\n\n

Source: Reuters<\/a>  <\/em><\/p>\n\n\n\n

There’s no way to predict exactly when a stock market downturn will occur, but it’s safe to assume it will happen eventually. Market downturns are normal, and, unfortunately, they’re also unavoidable. <\/p>\n\n\n\n

A market crash essentially means that stock prices across various sectors of the market take a sharp decline. Many investors start selling their shares at the same time, and stock prices fall. When this happens on a broad scale, a market crash can occur. <\/p>\n\n\n\n

Just like this trade that\u2019s causing mayhem in financial markets outside the US:<\/strong> The yen-carry trade.<\/strong> <\/h2>\n\n\n\n

Over the last few days, the Japanese yen has surged and hit levels that haven\u2019t been seen since World War II. <\/p>\n\n\n\n

The recent selloff is largely due to the yen-carry trade unwinding after the Bank of Japan raised rates twice in a row for the first time in 17 years. This move caused the yen to rebound from a 40-year low of 161.61 to 142.71 against the U.S. dollar <\/p>\n\n\n\n

Traders responded by selling off foreign assets and converting their money back to yen to limit their losses. It looks like the market might have gone too far too quickly, so we’re now seeing some adjustments during the European trading session as it moves back to more normal levels. <\/p>\n\n\n\n

Here\u2019s what we found the other day: US stock market rebound after major market selloff during recession fears<\/a> <\/strong><\/p>\n\n\n\n

Many people associate market crashes with losing money. But if you take the right steps before a market downturn, you might not lose money at all.  <\/p>\n\n\n\n

In fact, the opportunistic would see it as the best time to take advantage of the crash and make money from it. 
 
Take a cue from the “Rich Dad Poor Dad” author Robert Kiyosaki who expected a historic crash across financial markets. <\/p>\n\n\n\n

“The biggest crash in world history is coming,” he said, adding that sell-offs create buying opportunities but that markets wouldn’t recover for a long time. “Get more gold, silver, and bitcoin while you can,” he tweeted<\/a>. <\/p>\n\n\n\n

\n

Biggest bubble in world history getting bigger. Biggest crash in world history coming. Buying more gold and silver. Waiting for Bitcoin to drop to $24 k. Crashes best time to get rich. Take care.<\/p>— Robert Kiyosaki (@theRealKiyosaki) June 19, 2021<\/a><\/blockquote>