Your use of the word dear three times was an obvious attempt to belittle me. I got under your skin. you kept on losing your temper as you were completing your post. you even misspelled PhD as phd in your tantrum.
When there is crash .... very dificult to day trade and earn money actually. market movement would be extremely fast. there will be terrible internet lag. sometimes you will get disconnect and that would be very stressful. better go trading house and trade. movement very spiky. you have to set stop loss very far away. have to concentrate seriously. you can earn thousands of dollars within few minutes/hours if you manage to enter early. so be mentally prepared and do some practice run.
Bubbles are not an issue, its nice to ride the uptrend. Crashes are only a serious issue if you're stuck deep in an illiquid instrument with insufficient alternative income or if the crash is so deep that it disrupts your major income source - either salary or dividend. Maybe also if the firm you're trading through goes bust and there is no client compensation pay-out available. Otherwise bubbles are an opportunity to make immediate profit and crashes are an opportunity to either acquire additional assets at marked down prices or short the market as it drops. It all goes round.
Market downturns are where you can make the most amount of money quickly! A market participant should be unbiased: Market Up Trending, Long Positions. Market Down Trending: Short Positions. "But, the market goes down a lot quicker than it goes up." Recent SP500 Example: From its January 2018 High to its February 2018 Low, the SP500 declined -10% in 10 days! However it took the SP500 "Seven Months to get back up to the January 2018 High." "Rapid Decent.....Slow Ascension." Reminds me of the old wooden roller coaster in Santa Cruz, CA. [SP500, 1 year, 200 day moving average]
If wall streets only drive up stock prices then it would not be an issue. The problem is they drive up commodity prices as well. Everyone is talking about rising oil prices, which is disconnected from fundamentals of supply and demand
I'm not sure this is so, I've never heard there was a direct relationship, just an indirect one - as the real economy grows it demands more of certain commodities which drives their prices up - but surely, we do want the economy to grow? Anyway, looking at the S&P over the last 5 years, it is up 74%: Brent Crude is down 24%.
quote from victorycountry "Oh, I had been a trader before my phd and I am still a real world trader dear" https://www.elitetrader.com/et/threads/lessons-from-the-crash-of-2008.325749/ if I were you i would not dispute a world class trader with a PhD. it is not often that ET is blessed to have a member with these credentials.
The ground is littered with the remains of wiped out trading accounts set up by highly qualified professionals from medicine, law, accounting, engineering, teaching - oh yes not forgetting economics. But maybe I might learn something, hence the question and the questioning tone of my answer. I don't say he's wrong, I just say I've never heard what he says and invited something more to back it up.