How to trade during market crashes?

How to Trade During Market Crashes

During a crash, volatility is extreme. Do not panic sell unless it is part of your plan. If you have stop losses, they may already have closed your positions. Do not add leverage in a crash. If you want to buy the dip, use only risk capital and consider averaging in (e.g. several smaller buys) rather than one big order. Crashes can get worse before they recover. In India, selling in a crash still triggers tax on any gains (or locks in losses that have limited set-off). Have a plan before the crash, not during it.

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