How To Trade In MARKET CRASH📈☝️ | Traders बचकर रहना वरना तबाह हो जाओगे😲 | Theta Gainers

Summary

The video script discusses the impact of significant events like pandemics on the market, comparing the 2008 financial crisis with the 2020 pandemic and the recent market fluctuations. It highlights the Volatility Index (VIX) reaching high levels, indicating market fear. The speaker explores investment strategies, emphasizing the importance of understanding market trends and not panicking during market downturns. They also discuss global news, such as Japan's interest rate hike and its potential effects on investments, suggesting that investors should be observant and cautious in their trading approach.

Takeaways

• 📈 The speaker discusses the significant impact of events like the 2008 financial crisis, the 2020 pandemic, and the recent Resently situation on the market, emphasizing the importance of understanding market reactions to such events.
• 📊 The VIX index is highlighted as a crucial indicator of market volatility, with the speaker noting that it has recently reached levels comparable to those during major crises, suggesting a high level of market fear and uncertainty.
• 🌐 The Bank of Japan's decision to raise interest rates to 25% is mentioned, indicating potential global implications, including the need for countries with loans from Japan to reevaluate their investment strategies.
• 💡 The speaker advises against making the mistake of identifying as a trader too soon, suggesting that understanding market cycles and trends is essential before engaging in trading activities.
• 🚀 The potential for markets to recover quickly after a crash is discussed, with the speaker suggesting that investors who survive a market crash often thrive in the following decade.
• 📉 The script touches on the concept of 'time-based correlation' and 'price-based correlation', explaining how market movements can be influenced by the timing and price levels of previous trends.
• 🔄 The speaker discusses the possibility of a market 'time waste' scenario, where the market may stall or move sideways for an extended period, potentially leading to a breakout or a significant price movement.
• 💹 The importance of watching for signs of a trend change in the market is emphasized, with the speaker explaining that a true trend change is indicated by the market breaking through previous high and low levels.
• 🌍 The script mentions global news affecting the market, such as the Bank of Japan's interest rate hike and its potential impact on technology companies worldwide, as well as political issues in Bangladesh affecting the local stock market.
• 📝 The speaker provides investment advice, suggesting that investors should maintain a portion of their portfolio in cash to take advantage of opportunities that arise during market downturns or crashes.
• 📉 The potential for a sidewards to bearish market movement is discussed, with the speaker analyzing various time frames, including daily, weekly, and monthly charts, to provide a comprehensive market outlook.

Q & A

What is the significance of the VIX index reaching 65 in comparison to historical events?

The VIX index reaching 65 is significant as it indicates a high level of market volatility. Historically, levels of 65 have only been reached during major events like the 2008 financial crisis, the 2020 pandemic, and the recent market fluctuations, suggesting a level of fear and uncertainty in the market.

What is the impact of Japan's rate hike on the global economy?

Japan's rate hike to 25 basis points can lead to increased borrowing costs for many countries and companies that have loans tied to Japanese rates. This could result in the need to liquidate assets or reduce investments, potentially impacting economic growth and market stability.

How do large investors, such as Warren Buffett, respond to market crashes?

Large investors like Warren Buffett often take advantage of market crashes by investing in undervalued stocks. They may sell off assets to create a cash cushion, allowing them to invest during market downturns when others are selling out of fear.

What is the potential impact of the US Federal Reserve's interest rate increase on emerging markets?

An interest rate increase by the US Federal Reserve can lead to capital outflows from emerging markets as investors seek higher returns in the US. This may cause economic instability and pressure on the currencies of these countries.

What does the speaker suggest about the market's reaction to news events?

The speaker suggests that the market's reaction to news events can be swift and significant, often causing a rapid increase in volatility indices like the VIX. However, these reactions can also be short-lived, with the market potentially stabilizing within a few days.

What is the importance of the 52000 level in the context of the Nifty 50 index?

The 52000 level is considered a significant resistance level for the Nifty 50 index. If the market breaks above this level, it could indicate a bullish trend, whereas a failure to break above it might suggest a continuation of the bearish trend.

How does the speaker describe the market's behavior during times of high volatility?

The speaker describes the market's behavior during high volatility as unpredictable, with rapid increases and decreases in indices. They suggest that investors should be cautious and not make hasty decisions based on fear.

What is the potential consequence of the VIX index falling after reaching high levels?

If the VIX index falls after reaching high levels, it could indicate a return to normal market conditions and a decrease in fear and uncertainty. However, the speaker also suggests that this could be a temporary stabilization before further market movements.

What advice does the speaker give regarding investment strategies during market crashes?

The speaker advises investors to maintain a portion of their portfolio in cash during market crashes, allowing them to take advantage of investment opportunities as the market recovers. They also suggest focusing on fundamentally strong companies that can withstand market downturns.

How does the speaker analyze the market's technical indicators?

The speaker analyzes the market's technical indicators by looking at various time frames, such as daily, weekly, and monthly charts. They consider trends, support and resistance levels, and candlestick patterns to make predictions about future market movements.