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Good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking about how to protect yourself in a stock market crash if if the stock market was to crash we had a bad recession something like that which in order for the stock market to crash you need a really bad recession if all that happened

How do you make money in it how do you protect yourself i’m going to give you guys kind of like seven examples on how you can make money how you can protect yourself in a stock market crash scenario and this video was requested by you guys a ton after yesterday’s video i posted about the credit cards and auto loans and stuff like that now before i get into let me

Be very very clear i do not believe there’s going to be a recession in 2017 and so this eight million times i’m sticking by it i have no reason to believe that i have no reason to believe we’re going to have a stock market crash this year and in as far as future out-years 2018-2019 i haven’t made my judgments for those years yet i got to look at more data you know

As what the year progresses and things like that guy so i just want to make sure everyone is very clear that i’m not telling my stocks right now i’m not going short the market or something like that i just want to be very clear about that so there’s no confusion on because jeremy’s talking about stock market crash scenarios and stuff like that like we’re going to

Have we’re going to have one right now or something i do not feel like that but it’s very it’s very important to know how to make money in these situations because if you’re i’m 27 right now i’m going to see three or four stock market crashes if i you know invest if i live a normal life and i invest all those years i’m going to see at least three or four stock

Market crashes another six to eight stock market corrections i’m going to see several recessions like this stuff just happens so it’s important that you make money doing it let’s talk about this guys number one number one thing you could do is you could sell everything you could just sell everything now this one i actually don’t like at all i don’t i mean the

Only thing worse than selling everything in a stock market crash scenario is if you are long everything and you have nothing else in your as long shares what you have is where you have a stock market crash a bad recession it’s sometimes it’s hard to know where the bottom is it’s hard to time it out perfectly like oh here’s the bottom so you know here’s the top so

I need to sell everything now it’s hard to know that guys there were people selling their entire portfolios when the dow jones was at 7,000 points in 2009 and now we’re eight years later nine years later and the stock markets up three times we’re at 21,000 points so imagine those people selling everything thinking oh it’s going to get worse add a lot of 3,000 or

4,000 i need to get out now imagine the kind of money those people tossed out on guys so the whole sell everything unless you happen to sell perfectly right at the top and that’s hard to do because usually as i talk you know everything’s grand everybody sees everything is great everybody seem flowers everybody seen a sun shine and then also things start getting

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A little worse a little worse and then also in some bad news comes out and sometimes the stock market predicts this stuff even beforehand so it’s really hard timing it perfectly so selling everything in my opinion is not really the way to go unless you’re like a market genius and you know this the top i need to sell everything now guys it’s really hard to time it

Like that number two way you can do it is you can buy short-term put options on stocks your long so an example of this is let’s say you have $10,000 in apple stock $10,000 in apple stock a great situation for you if you’re in a stock market crash and everything’s getting worse in recession and just bad news is coming out if you still want to stay long those apple

Shares because you think they’re a great value and you know you just want to hold them well you could say okay i’m keep my 10,000 there i’m going to put another thousand dollars in short-term put options i’m going to buy short-term put options what that is is that’s basically placing a bet that apple shares will continue to go down and if they do continue to go

Down they go down quite a bit you’re going to make a lot of money on those short-term put options unless they’re so far out of the money that it’s like unrealistic or something like that guys so that’s a great way doing it and what what will happen is okay let’s say apple shares bounced up that’s great for your $10,000 unfortunately $1,000 might become worthless

But at the same time you know you protect it yourself now let’s say the stock did drops a bunch let’s say it goes down ten fifteen percent and now also in your short-term put options are worth twice as much so now you have $2,000 you can sell off those short-term puts and you can buy back apple shares and it’s much cheaper price and now have a $12,000 position in

Apple instead of or $12,000 worth of shares you know we say instead of the 10,000 originally and then just being down more so you can definitely make money that way guys and i just kind of stick to the the the 10 percent plan so like i said if i had ten thousand dollars in stock by a thousand dollars worth short-term put options when i say short-term put options

I’m talking about like ones that are due out like a week or a month or two months from now neck and you know really be volatile or when a stock market crashes happen recessions happening you know the markets just going up a little bit here and one day i will spike but the next day will drop huge and next day will drop huge so you can definitely make money that way

It’s a phenomenal a do it number three you can sell medium-term call options so you have some people in the markets that might want to try to time it as far as going up so what you can do is you can sell call options that are due out when i say medium-term i’m talking like six to twelve months from now six to twelve months from now and you can sell those for way

Out of money that’s the apple stock you you have that in this hole is let’s say it’s trading out a hundred dollars a share there might be somebody that wants to buy a call option that’s 120 dollars that’s due out six months from now they may only pay a dollar or two per contract for that well you add that times 100 shares which options all have a hundred shares

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Underlying in them and you can make money that way guys in the chances it’s going to spike up that much in that short of amount of time is very very low because you’re in everything is getting worse and worse so the chances it’s going to spike you know it’s definitely a lower probability but there is definitely risk because what if false in apple stock was go to

150 you would lose a ton of money on that deal so you got to definitely watch your sides and then you can even play that okay i sell long term call options well let me go ahead and buy some short term put options just in case that stock happens to rise a ridiculous amount then i may even protect on the downside so you’re protected on the upside downside and every

Side has a round guy i hope you’re following me if you don’t know much about options some of these option related ones might be a little difficult for you understand i understand i have a lot of options on my channel check out those what our options understanding options things like that guys i got many of them it also research on your own number four number four

You can buy precious metals precious metals i’m talking really about silver and gold silver and gold they usually outperform the market in a stock market crash and usually there’s their safe havens a lot of people flood into those metals whenever you know things are rough and things are scary a lot of people just like to you know throw away stocks or throw away

Anything volatile and go into gold and silver so you can definitely protect yourself by always owning i always own some silver i sometimes own some gold here and there but not very often i remember one time i was a lot in gold and this was about this was august of i believe 2015 i believe i had a substantial amount of money in gold and it was it was a scary time

Because there was a lot of worries about china slowing down and things like that i think was august 2015 then when this happened and i put a lot of money in gold just because i knew it was going to be a safe place to put my money for that time being guys that’s definitely a way you can play number five you can keep 20 percent of your portfolio total in cash this is a

Phenomenal thing i used to always be invested a hundred percent so like if i had you know a hundred dollars in my portfolio all hundred dollars were invested about a hundred thousand dollars that all hundred thousand was invested every penny was always invested now we keep money on the sideline just in case something happened just like aunts i see an opportunity go

Out and buy some shares so if you keep let’s say you have ten thousand dollars in your portfolio might make sense to keep two thousand on this side at all time so you have eight thousand invested two thousand sitting on the sidelines and when that great opportunity comes around you can take advantage of it and you can you know allocate some shares for very cheap you

Can do some of these things i talked about with short-term you know put options selling call options and all those kinds of things guys and that’s a phenomenal way you should just always keep some money sitting around for a rainy day because guess what rainy days do gun they do come number six number six you can buy short-term put options in highly volatile stocks

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So another if you’re long a lot of stocks right you can just buy some put options in some of these high volatile stocks that you know are drastic movers in a situation like that i put options in them especially the ones that you don’t might be facing a bankruptcy there’s a lot of worries there you can make a phenomenal amount of money by just only put options and

Then selling those for a profit and hopefully you’re making a profit as long as the market continues to weaken and that stock there’s more more worries about it you can make a lot of money that way guys it’s been people that have made millions of dollars in stock market crashes by just buying put options buy and put options and all these highly volatile stocks that

There’s very many risk out there about any last one the last one number seven you can sell off any leisure type positions and only hold more safer companies more need based company so a example of a leisure based company that i hold right now is wynn resorts when resorts is a very expensive place to go it’s not cheap it’s not the kind of place where when times are

Hard and people are losing jobs that everybody’s just like oh let me go look you know the the resort and casino let me spend all this money it’s not the type of place that really does well in those types of times right but there’s other places like let’s look at another one of my positions google like google would it be hurt by a recession maybe a little bit but

Still like just as many people are going to be using google then this is still got to advertise on there otherwise they’ll lose business to another person and their situation will just get even worse so google is more of a needs-based company on you say even another position i hold starbucks you say well starbucks you know $5 lattes well people need those lattes

Like you won’t believe they need those lattes like a bodybuilder needs a steroid needle up their ass you know what i mean like that’s like a need-based thing if your starbucks customer is not like oh times are hard i can just go without my starbucks coffee today like you know people just need that stuff procter & gamble kimberly-clark johnson & johnson all

Those type of companies are very need-based you know if you need a band-aid you’re going to go buy a box of band-aids you know what i mean so think about that guys and those are seven ways you can protect yourself and/or make money in the stock market i hope you guys enjoyed and when our stock market crash does happen don’t get too scared about it because guess

What now you know how to make some money doing it guys hope you enjoyed that if you just came across this channel you may want to subscribe we talked personal finance in the channel we talked entrepreneurship i’m an actual business owner you’ve ways so many business tips we talk to stock market more than anything thank you for watching guys and have a great day

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