How To Make Millions In The Next Market Crash

Many investors are predicting a stock market crash in 2021 and the years following it. In this video I want to talk practical methods of making money in a stock market crash. We should not fear a crash, instead it should be something we look to make money in!

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It’s the story that you’ve all heard before. The stock market crashes, then a couple of years later someone comes out and shows how they made millions sometimes billions from the market crash.

Obviously one of the most well known ones is Michael Burry who shorted the stock market in 2008 and made a whole lot of money. That was made famous by the movie the big-short.
Also you’ve got George Soros who pocketed a billion dollars in a day by shorting the British Pound. You got Andy Krieger, he made millions as the kiwi crashed.

These guys, they had specific tactics that they used to make money in the crash. Well most investors were getting crushed, pulling out of the market and losing money, they made money.

Now what I want to do in this video is talk about how you can do the same. Now I can’t guarantee that you’re going to make millions, if I did you should probably click off this video, I mean that all depends on how much you start with, but I am going to show you tactics on how to make good money in a stock market crash…

So we’ve all heard of the stock horror shows. GoPro everyone thought this company was going to be worth 10’s if not hundreds of billions of dollars. Fast forward to today and how many people are buying go pro’s? Not many at all. And thus the stock got absolutely crushed, it’s fallen over 90%.

Nikola an even more recent example, again a stock that had a lot of hype, because of the EV potential, but it got crushed.

Now the reason I’ve showed you these examples is because not all investors lost money with these stocks. There was this astute group of people who were able to identify the hype and they went and shorted these stocks. Once the bubble popped and the stocks crashed these investors made good money.

Because when you short a stock, you profit when it goes down. If it goes up, you lose money.

So if you are able to identify trends when stocks are getting hyped and overpriced, then you can make a lot of money through shorting stocks.
I mean let’s be honest, sometimes it can be easy to tell when stocks are overhyped. Because you get your neighbor John who knows nothing about investing, and he tells you he’s buying the stock. The stocks all on YouTube, the stocks in the news, it’s on social media. These are often signs that they’re overpriced.

For example bitcoin, at the height of bitcoin, everyone was talking about it. I remember my flat mates buying it, my friends who didn’t know what the word invest meant, they bought it. And what do you know, next thing, the bubble popped.

So that’s one way you can make money in a market crash, it’s by shorting certain individual stocks. That’s the tactic Michael burry used to make money from a crash, he shorted sub-prime mortgage bonds. Or George Soros, he made a billion dollars in a day by shorting the British pound.

The other thing that you can short if you are extremely brave is the stock market as a whole. As of today, the market is at, or close to all-time highs and there’s a lot of people saying it’s overvalued. Even Michael Burry himself thinks the market looks overinflated.

He said index fund inflows are now distorting prices for stocks and bonds in much the same way that CDO purchases did for subprime mortgages more than a decade ago. The flows will reverse at some point, he pointed out, and “it will be ugly” when they do. “Like most bubbles, the longer it goes on, the worse the crash will be,”.

Now this crash that he’s speaking of, if it happens and you short it, well you’ll make good money... (end of script...)

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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.