A stock market crash refers to a drastic, often unforeseen, drop in the stock market over a single or several days. The sudden drop in stock prices may be influenced by economic conditions, catastrophic events, or speculative elements.

Understanding market crashes

<ul><li>The Great Depression Crash of October 1929. Speculations in commodities such as autos and homes caused share prices to skyrocket, driving up prices in a panic buying mode, but many went into bankruptcy when the market bubble popped.</li><li>The Black Monday Crash of October 1987 is attributed to computer trading, derivative securities, over-evaluation, illiquidity, and trade and budget deficit.</li><li>Technology stocks triggered the Dot-com Crash of 2000-2001.</li><li>The Stock Market Crash of 2007/08  was triggered by the collapse of mortgage-backed securities in the housing sector.</li><li>The COVID Crash of March 2020.</li></ul>

Famous stock market crashes in the US

Circuit Breaker: Level 1 and 2 market-wide circuit breakers suspend trading for 15-minutes and a level 3 halts trading for the rest of the day. This can happen when the S&P 500 falls more than 7% at any time before 3:45 p.m. EST. Plunge protection: Turbulent markets can also be dampened by the purchase of huge quantities of stocks by large entities when prices drop. Big entities hold prices up to prevent individual traders from panic trading.

How to prevent a stock market crash

A stock market crash refers to a drastic, often unforeseen, drop in the prices of stocks in the stock market. The sudden drop in stock prices

Stashed ideas

Stock Market Crash

GI is a legal label marking in which region a product comes from. GIs can be domestic or international. Domestic GIs are protected by local governments and international GIs are protected by the TRIPS agreement, which is part of the World Trade Organisation (WTO). Once a GI status is approved, the label functions similar to trademarks.

Geographical indication (GI)

<ul><li>Consumers: GIs act as a quality guarantee that meets certain production standards.</li><li>Producers: GIs can help local communities to invest in their unique production process and raise prices.</li></ul>

GIs can benefit consumers and producers

Legal labels that mark where a product is from can be big business for local food producers.

What the heck is a geographical indication?

The "floor price" in an NFT market is the lowest price of any NFT within a chosen category. Buying the floor is a good starter strategy as it requires less money to start with. Cheaper NFTs fit into a larger number of potential buyers' bankrolls and can benefit from increased visibility.

Buy the floor

If you have more money to invest in NFTs, buy the ceiling NFTs. They are the rarest and most in-demand assets. If demand increases for the project, ceiling NFTs can significantly increase the price. The downside is that fewer people with enough money can buy the NFT, making it harder to sell at a good price.

Buy the ceiling

Find NFTs listed for cheaper than previous sales, not just NFTs listed at a price below other sellers. Do not judge value only on listing prices. For example, when looking at an NFT with ten copies, one is listed for $100 and the rest for $500. $100 may look like a good deal, but if the previous sale for the NFT is only $20, it makes the $100 listing overpriced.

Look for underpriced NFTs

Keep an eye on the various levels of market trends, which all have varying effects on the value of your NFT. <ul><li>The market for all NFTs. The more people interested in NFTs, the more money will flow into projects.</li><li>The market for an NFT project. Watching this trend is vital as individual projects quickly gain or lose popularity. Watch its trading volume and ranking relative to other NFT projects over time.</li><li>The market for a specific NFT. Individual NFTs can fluctuate in price because the NFT is related to some person or organisation becoming more or less popular.</li></ul>

Use market trends

Watch how sellers for an NFT are acting. If all the listed prices are well above recent sales with listing prices spaced out from each other, you can infer that the sellers are patient and won't react if you list for a lower price than them. However, if many prices are low and close together, it is a sign of competitive sellers who like to undercut.

Find NFTs without many sellers

You can use the strategies without much knowledge about the project, but getting involved in the community is hugely beneficial to get a better perspective on how a project will grow and what drives the demand for its NFTs.

Get involved in the community

Whether you're planning a short term flip or a long term investment, you will want to put some thought into your NFT purchases. This NFT trading guide covers a variety of strategies you can use to make money with NFTs as a beginner or a more experienced investor.

NFT Trading Strategies

When you're new to investing, it is best to start with index funds or mutual funds. This will keep your portfolio diversified and reduce risk. But if you want to move on to invest in individual stocks, a good first step is reading and understanding stock charts.

Investing in individual stocks

A stock chart is a graph that shows the stock price over a specific period. Advanced stock charts will show additional data. The best website for basic stock information is Google Finance or Yahoo! Finance. The series of letters after the company's name is the ticker symbol and identifies the company on the stock exchange. For example, AAPL is Apple's ticker symbol. Then click the button to expand the chart to full screen.

The stock chart

The Robinhood app can make trading easier by analyzing stocks using the quick-to-open charts. Then, filter the chart from one day to five years' worth of performance. Trades cost $0 with Robinhood if you wish to invest independently.

Buy stock on your own with Robinhood

A stock chart shows historic prices. It is useful when you can decipher what it's showing so you can make more accurate predictions. <ol><li>Identify the trend line</li><li>Look for lines of support and resistance</li><li>Know when dividends and stock splits occur</li><li>Understand historic trading volumes.</li></ol>

Learning to read a stock chart

It is essential to understand that stocks will take massive dives and make huge climbs. But it is best not to react to these huge drops or gains. News will come and go, but pay attention to it when news coincides with a drastic change in the trend line. For example, in 2011, Steve Jobs resigned, and Apple noticed that their profit margins were decreasing despite a growing smartphone market. This and other factors caused the stock price to fall. But new CEO Tim Cook turned that around, as noted on the trend line. While most companies will bounce back, not all can.

Identify the trend line

Lines of support and resistance are levels at which the stock stays within over a certain period. <ul><li>A level of support is a price that a stock is unlikely to drop below.</li><li>A level of resistance is one that it's unlikely to climb above.</li></ul> The lines are subjective. Everyone will draw these lines differently, depending on how long they plan to hold the stock. Someone planning to hold stock for a long time won't care as much about the ups and downs, but a short-term investor may draw more lines to analyse trends during a shorter period.

Look for lines of support and resistance

You can see at the bottom of the chart when a company issued a dividend and if there was a stock split. <ul><li>A dividend is when the company decides to give a portion of its earnings back to its shareholders. (Not all do. Some prefer to focus on growth). If you own the stock, you'll get some of the profit.</li><li>A stock split is when more shares of stock are issued to the public. This is done to attract smaller investors or if the price isn't in line with competitors. For example, Apple did a 7:1 stock split, meaning you now have seven for every share you owned before the split.</li></ul>

Know when dividends and stock splits occur

At the bottom of the chart are small, vertical lines. This is a trend of the volumes at which the stock is traded. You should not only focus on volumes when you buy a stock. While there's not always a correlation, sometimes volumes can increase to shift the stock's price quickly. For example:<ul><li>In line A, there was a high volume of trading activity and a drop in the stock price. It could have been news that caused people to panic.</li><li>In line B, there is a slight uptick in trading volume that corresponds to an upward stock price trend. </li></ul>

Understand historic trading volumes

When you are practised at reading a stock chart, you might be looking for more powerful tools, such as: <ul><li>E*trade takes advantage of robust stock charts and trading tools. However, their pricing isn't the best.</li><li>Robinhood. This app gives just enough information to make informed decisions.</li><li>TD Ameritrade. You pay nothing for access to any of TD Ameritrade's trading platforms, streaming news, and expert research.</li><li>Public makes stock trading into a social event. You have access to a community of investors. Public also gives you access to stocks for as little as $5 and offer fractional shares.</li></ul>

Stock trading tools

Stock picking is hard, and understanding stock charts is the first step toward success. Here's our beginner's guide on how to read a stock chart.

Investing 101: How To Read A Stock Chart For Beginners

<ol><li>Make a cryptocurrency brokerage account. Coinbase, Gemini and eToro are good crypto brokerages. </li><li>Fund your account. Connect it to your bank account. Most crypto brokerages offer bank funding through debit cards and wire transfers. </li><li>Pick crypto to invest in. Most active cryptocurrency traders use Bitcoin and Ethereum but they also allocate a part to smaller altcoins.</li><li>Choose a strategy. Some choices to teach you how to invest in foreign currency are Asia Forex Mentor and One Core Program.</li><li>Consider automated crypto trading with a platform like Coinrule.</li><li>Store your funds in a cryptocurrency wallet.</li></ol>

5 steps to trading cryptocurrency

Coinbase is a good option for new investors as it has a free cryptocurrency conversion feature where you can trade your crypto for any other token that Coinbase supports. Other solid crypto brokerages are eToro, Binance and Gemini. Robinhood supports certain cryptos and only supports trading for 5 altcoins.

Best cryptocurrency brokers

<ol><li>Learn how to read the charts. The best way is through price action - a technique used by most professional traders.</li><li>Trade with a proven trading strategy or a combination of strategies.</li><li>Have a solid trading system. Use one that is defined by the technical aspects and the business behind trading.</li></ol>

How to trade crypto successfully

Ensure to invest in cryptocurrencies that have a solid team backing the project.Decentralized finance (DeFi) cryptocurrencies are some of the hottest altcoins of 2021. Altcoins are a general term for any cryptocurrency that is not Bitcoin. DeFi tokens are usually built on Ethereum's blockchain.The top 5 DeFi tokens ranked by market capitalization:<ol><li>Uniswap (UNI)</li><li>Aave (AAVE)</li><li>Synthetix (SNX)</li><li>Maker (MKR)</li><li>Solana (SOL)</li></ol>

Choosing a cryptocurrency

A cryptocurrency's price can fluctuate over 10% in one day. It is great if you're looking for high returns, but not for the risk-averse investor. There is always a risk of losing your money to the market. If you believe in the future of cryptocurrency, holding on to your crypto assets long term may be more valuable.

Investing in Cryptocurrencies

Learn how to trade cryptocurrency whether you're a beginner or advanced trader. Our how-to guide provides simple instructions.

Stock Market Crash

What the heck is a geographical indication?

NFT Trading Strategies

Investing 101: How To Read A Stock Chart For Beginners

How to Trade Cryptocurrency: Beginner Guide • Benzinga

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