After everything was said and done, if you had held onto your shares from the 2008 crash and then added more as the market tanked incrementally, you would have made a fortune ten years later. Let’s look at some random examples. To simplify matters we are going to assume that one lot of each stock was purchased roughly at the highest price during the 2007-2008 top and an equal amount was purchased at roughly at the lowest price in 2009. However, any person employing a bit of TA and Mass Psychology would have achieved a better average entry price, even though they did not purchase at the top or the exact bottom.
The top players use words like bear market, stock market crash, etc, to trigger a Pavlovian type reaction. They know when these words are used the masses will do precisely the same thing they have done for generations, sell everything and throw the baby out with the bathwater. What follows after that? Miraculously the markets start to bottom, and this is the same playbook that has been used over and over again.
If one looks at the above chart, the stock market crash of 1987 appears as a blip and even the deadly crash of 2008, proved to be a buying opportunity. Pull up any long term chart and one thing becomes painfully obvious if you can determine the trend, a stock market crash is nothing but an early retirement gift from heaven. Buy the noise and sell the B.S. It is quite easy to spot bottoming action; The masses are in panic mode and the markets are trading in the extremely oversold ranges.