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How to Trade a Stock Market Crash and Sell-Off in 2022

by | Jan 21, 2022

Guys, the Nasdaq 100, or the QQQ, is down $20 a share this week and almost 20% from recent all-time highs… So this could be the most crucial time for traders to learn how to trade a stock market crash in 2022.

That’s huge given what the market has done the past six years. And last Friday, I made my most bombastic and hyperbolic prediction ever. I said there was a huge possibility of a stock market crash or correction happening as soon as Tuesday — the day after Martin Luther King Jr. Day.

It didn’t happen quite like I predicted…

We did, however, have a 2% down day in the S&P 500, and the QQQ also fell a little more than 2% — a major sell-off by anyone’s standards. 

But what’s ensued since then is the worst week in the stock market since October 2020. What we’re seeing is almost like a slow motion stock market crash that’s being picked up on the charts, and the lack of earnings momentum is showing it as well.

So what now?

That’s the thing when you’re a trader — nobody gives two hoots about what happened the day before or last week. You’re only as good as your next trade.

So again, what do we do now after having one of the worst weeks on the stock market in over a year?

Well, we need to know how to trade a potential stock market crash for 2022…

How to Trade a Stock Market Crash in 2022

One of the most important things a trader needs to realize in 2022 is we’re in an entirely different trading regime — there’s been a huge change in tone on Wall Street. 

We had a consolidation period after a nice, long and steady rise from the COVID-19 lockdown lows. And now, things are switching up again…

It’s looking like the market is shaping up to have an incredibly bearish year — especially for the first quarter.

A lot of the pain — if not all — we’re seeing right now is coming from the QQQ. So there are some key levels to pay attention to in Q1 in order to stay ahead of the curve.

But before I dive into that, I want to discuss the No. 1 trading strategy I like to use when the market shows signs of selling off or crashing…

Watch the video below to learn more about how to trade a potential stock market crash in 2022. I also have thoughts about a Bitcoin trust that could instantly deliver traders a 30% gain if it liquidates…

And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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