How much does the stock market have to decline to be considered a crash?

Crash” is not measurable in terms of a specified point drop or percentage. Calling things bull, bear, correction, rally, or any other adjective is just an attempt to give the receiver if the information some context.

I’ll try and explain the feeling of a crash the best I can. I consider something to be crashing when it’s price is falling in a rapid fashion and everytime you think there is a price level it should stop the market blows right through it. Typically you will see a cascade effect, meaning the downside move accelerates as more people sell. Lastly you begin to honestly believe that the decline will never stop.

I’ve been in a few of them and they are trippy. Its hard, but there are 2 tried and true ways of dealing with them, while having minimal damage or even make a profit.

When you realize it’s happening you stop whatever you are doing and just watch the action. Don’t buy, don’t sell, do not adjust anything.

2nd you take a collateral damage idea and put a limit buy order in at a price that equals the decline of the market.

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