By now many people are asking what to do after a Stock market crash. First thing you need to know is the Stock market won't correct itself the next day. Don't be rash and start buying. If history is any indicator (it is), wait at least 2 days before buying any stock. A crashed or crashing market causes a temporary panic where many will sell when they shouldn't. To a professional Trader, it is time to get your buying power ready for cheap stocks.

I'm ready to buy, so what do I buy? In this particular situation it is time to buy stocks with "Blue Chip" qualities. Blue Chip quality stock isn't necessarily a Blue Chip stock, but it does share similar qualities. The main quality to look for after a crash is regular dividend payouts and good earnings for the last 3 quarters. Some Traders may disagree with the particulars I'm stating here. These are what I look for after a crash and it seemed to work.

Today there is a very easy way to find the right stocks that did not exist earlier. "Mad Money" with Cramer on CNBC is one of the best sources for Stock Market information. This is not a plug as I get absolutely nothing from mentioning it. A novice armed with just the basics could make money just watching the show.

Remember, wait approximately 3 days after a crash before buying stock. Track "Blue Chip" quality stocks and find the top ten losers of the crash day and continue tracking them. If you make just one play on any of these top ten losers with said quality, you will make money. Don't expect your gains to be right away; however, it won't take too long before you realize them. I would say good luck, but luck has nothing to do with it.

Learn more about this author, Aaron Henry.
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