Market fluctuations are an important part of the investment cycle. Just as life characterised by ups and downs so is same in stock market. It’s hard to explain the psychology of the stock market.

A lot of experts list things to be prepared for when the stock market crashes but what to do after market crash? There are many experts who have listed some solutions for this condition.

In this article, we have suggested you to take a deep breath and relax your body and the second step would be to check out the checklist below which will help you to do when stock market crashes.

1.  Nothing- If you are long-term investor

A long-term investor has less to worry about the stock market ups and down as it does not impact them with the major hits. It is best to do nothing as a long-term investor as the wave continues to flow with both upward and downward trend.

Additionally, it is an open window for long-term investors to buy more stocks as the prices are on the downward trend. This way, you can book more profit in future.

2.  Invest only as much as you can after saving enough for the next 5 years

A stock market crash is no good news for the short-term investors and it always disturbing. We do not recommend any investor to invest money in the stock market without saving enough money for next 5 years. A stock investor needs to be intelligent and have well knowledge of market volatility.

3.  Diversifying Income Portfolio

As a clever investor, one should also build assets outside the stock market that can ensure continuous money flow even when stock market crashes. A continuous running stream of income ensure that you are financially stable even in stock market crash.

4.  Buy More Stocks, if you can

This is a perfect opportunity to buy more stocks when the market crashes. If you have saved enough and other assets that generate income for you, this is the right time to invest in more invest.

We all know the thumb rule of stock market, to buy at low and sell high. In the case of a stock market crash, you can buy more short-term and long-term stocks that will help to book profits when the market will go in upward trend.

5.  Get more long-term investment

This is a perfect opportunity to invest in long-term stocks when the market is hit at rock bottom. The reason for this is simple, long-term stocks that last for over 10-25 years yield more profit because of the indirect impact of deflation and high-profit margins on the stock market.