Learning to avoid a stock market crash comes from learning how to play superior defense. You always have to be able to define where the risk is and where your blind spots are.
If you have money committed in the market – as a trader or investor – you must be able to define your risk. If you don’t know these specific points, you’re likely to suffer both a financial and emotional shock to your system.
It’s hard enough to make money in the market. When it gives you a gift, like it’s done the past several years, you have to protect your equity like it’s a new born child. You don’t give it back or let it get taken away.
Let me know what you think in the comments or on Twitter, and please send this to anyone who you think has confused brains with a bull market. They will thank you for it.