$Invesco QQQ Trust(QQQ.US) Recently, AI and semiconductor stocks have plummeted, causing a lot of people to wail.

Actually, this is the best time to listen to how Peter Lynch calculates this account.

He said that buying stocks only requires understanding a simple math problem.

In the past 93 years (as of his speech), the stock market has experienced 50 crashes with declines exceeding 10%.

On average, that's once every two years.

Wall Street invented a nice-sounding term for it: "correction."

In reality, it's just a euphemism for "a large chunk of your money disappearing in an instant."

Out of those 50 crashes, 15 had declines exceeding 25%.

That's the so-called "bear market."

Calculating it, roughly every six years, you'll run head-on into a 25%-level crash.

This is the norm for the stock market.

The market will definitely fall; it's just a matter of time.

If you don't even have this basic psychological preparation, you'd better not buy stocks at all.

And don't believe those experts who jump out afterwards saying "I saw it coming."

No one can accurately predict when a crash will happen; they might have guessed wrong 53 times before getting it right once.

Since you can't avoid it, the smart person's approach is to use it.

How to use it?

Suppose you've carefully studied a company's balance sheet and confirmed it's doing well.

You think it can rise to $22 in the future, so you bought it at $14.

Suddenly, the broader market crashes, and it gets caught in the wrong sell-off, plummeting all the way to $6.

Is this a bad thing?

This is a fantastic thing.

Going from $14 to $22 is a nice return; but going from $6 to $22 is a huge profit.

There's only one prerequisite: you truly understand what you're holding.

As long as you can see the cards clearly, every panic in the market is handing money to those who know what they're doing.