Crashes are scary, and they are part of investing history.
Direct answer
A market crash is a sharp, sudden drop in prices. If you have a long time horizon and a plan, many experts suggest avoiding panic selling, keeping your emergency fund separate and continuing regular contributions if you can. If you need the money soon, your plan should have protected it already.
What to do
- Pause before acting.
- Check your plan and timeline.
- Do not sell in a panic.
- Keep contributing if your finances allow.
- Avoid borrowing to invest.
- Speak to a qualified adviser if you are unsure.
What not to do
- Check prices every hour.
- Follow social media tips to "buy the dip" without a plan.
- Pull money you need for essentials.
Where Teyro fits
Teyro's How to Understand Investment Risk course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Prepare before a crash, keep a cool head during one. This is general education, not advice.
This is general education, not personal financial advice.
