If you have been investing in recent months, you will likely be surprised by the flash crash from late July to August. It isn't easy avoiding a flash crash. In early July, I have been emailing students in Investing Accelerator - to take profit, deleverage, and reduce your position while building a good enough cash reserve. You will never know when a crash is coming. You will never be certain. That's why you can't be 100% cash but keep your strongest core positions while having a good 20%, 30% or even 40% cash instead. I doubt anyone could have predicted the assassination attempt on Trump and the change in candidate from Biden to Harris. Nevertheless, I avoided 2 weeks out of the 4 weeks of the crash (around 50% of the crash). It wasn't perfect as I was expecting a bounce up after the first drop but I was 2 weeks too early. Some students in the program did better than me as they had put options as hedge. Some students maintained their equity and lost almost nothing during this process. Another key lesson take away from this flash crash: ​​ Next time the moment my signal turns negative, I would first exit all of my option positions even if they are long term. I can always do shares if the market is quite high. (Seems obvious in hindsight but not so obvious when I expected the correction to be small)​ What's your key takeaway from this flash crash? Cheers, Eric ---- Eric Seto Chartered Professional Accountant (CPA) Chartered Investment Manager (CIM) Founder of 5MinInvesting.com In August, my goal is to help 15 people without a financial background to master investing through Investing Accelerator. Investing Accelerator is designed for people without a financial background. The goal is to achieve 30% return per year. In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth. In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.