The US tech stock market has been in decline for the past two months and, at the time of writing, the Nasdaq 100 Index has already fallen to 26% from its peak, which took place in March this year. This means that many companies have lost a significant amount of their value. So how can you benefit from the recent US tech stock crash? The key lies in identifying which companies are likely to recover quickly and those that are probably not going to do so well any time soon, so you can make informed decisions about where to put your money. Here’s how you can profit from the US tech stock crash… How to Profit from the US Tech Stock Crash
Things are going to get worse before they get better
Table of Contents
And for traders and investors, that could be a great thing. Looking at your portfolio, you’re likely to see significant losses in many of your holdings—particularly among tech stocks. There are many reasons for why tech stocks have been crashing so hard and fast, but one truth is clear: things aren’t going to get better anytime soon. The next few weeks will undoubtedly be filled with uncertainty—but you can use these uncertain times as an opportunity… With thousands of jobs disappearing every day, investors will pour money into less risky investments like gold and land.
Finding out what exactly is driving the growth
There are many different factors that contributed to growth for companies in these sectors, but it’s important to know what you need to do if you want to find a good stock that has been overlooked. One of these ways is by doing your own research and seeing what tech stocks have dominated and risen compared with others.
With knowledge on which areas have been growing rapidly, you can invest more money into them and maybe find a great investment opportunity that others have missed. The tech sector has seen a lot of growth over recent years, but now it seems like there is less room for new companies as investors shy away from riskier assets.
What you need to know about crypto technology
Cryptocurrencies, or digital tokens such as Bitcoin, have exploded in popularity since late 2017. But what is driving their record-setting run? What are these coins? And what does it mean for investors? Let’s break down some of these questions. A cryptocurrency is a virtual currency that can be used to make purchases and transfers online—but unlike traditional currencies like dollars and euros, cryptocurrencies aren’t issued by governments or banks. They also aren’t tangible: Instead, they exist on a blockchain, which acts as a public ledger of transactions made using cryptocurrencies. When you buy a cryptocurrency—or mine one yourself—you get units of that currency stored on your blockchain wallet. These wallets can hold several different types of cryptocurrencies at once.
Fundamental analysis basics
Fundamental analysis is a bottom-up approach that evaluates market performance by looking at economic indicators such as corporate earnings, inflation and interest rates. This differs from technical analysis, which is a top-down approach that bases its predictions on trends in stock prices. Fundamental analysts make predictions by measuring a company’s fundamental value against current trading levels. They typically use regression analysis and valuation ratios like price/earnings (P/E) ratio, price/book value and price/sales ratio to compare fundamentals of multiple companies in an industry segment to get an idea of which stocks are undervalued. If they determine that a stock has more value than its trading level suggests it should, then they buy it and wait for those fundamentals to start increasing demand.
Valuation analysis – how you can make smart investing decisions
Valuation analysis is a helpful way to determine whether or not a stock is worth your investment. Start by checking if its price-to-earnings ratio (P/E) is above or below 20. If it’s above, you may want to hold off on buying; if it’s below, you can probably make some money. Next, check its price-to-book ratio (P/B). This measures how much investors are willing to pay for each dollar of a company’s assets—and helps estimate whether it’s overvalued.
Risk management – how much risk can I afford?
The best investors know their risk tolerance, and take steps to manage it. They don’t bet more than they can afford. They consider their worst-case scenario if an investment fails, and use that as a guide when they plan their investments. For example, you might decide that you can afford not to lose any more than 10% of your portfolio in any given year. That means you should aim for returns above 10% on your investments—and if you get 5%, you’ll be content with keeping your money in cash (or bonds) until things look better (or adjusting your asset allocation so that less of your portfolio is at risk). But remember: Taking extra risk doesn’t always mean you have a higher chance of earning a bigger return.
Technical analysis basics – technical indicators are nothing but math equations
While not all technical indicators are mathematically based, most of them are. Some traders use candlestick charts and trend lines, which are two types of indicators. A candlestick chart plots price changes in a way that makes it easy to determine if prices moved higher or lower than they did previously. Trend lines tell you where prices have gone in recent periods and will show you where they’re likely headed. Technical indicators can also be used alongside price patterns such as head-and-shoulders formations or double tops and bottoms.
Trading chart patterns like a pro – chart patterns show recurring market behavior in certain price ranges
Many traders think of trend trading as some kind of voodoo that requires a PhD in mathematics and a master’s degree in psychology. Nothing could be further from the truth. Trend trading is based on very simple ideas, and all it takes is hard work and perseverance. Once you understand how market trends work, you can use them for profits almost every day. There are only three things you need to succeed as a trend trader
Trend trading basics – finding predictable trends with no effort at all
Looking at a stock chart can be intimidating. The good news is that there are simple ways to spot trends without any training or experience. If you know what you’re looking for, picking out patterns and trends won’t seem so complicated. You’ll be able to create a checklist of traits shared by most stocks in an uptrend, giving you a simple way to find top-performing stocks with just a quick glance at your charts. Here are 5 things tech investors need to do before making investments in 2019…