Active investing means someone (a fund manager or you) is constantly buying and selling to beat the market. Passive investing means you buy a broad market index and hold it long-term. Active costs more in fees and taxes, but passive doesn't guarantee you'll beat inflation every single year. Most research shows passive wins over decades, but active can help during specific market conditions. The choice often comes down to how much time you want to spend and what fees you're comfortable paying.

Having a written plan before the crash happens is crucial. Know why you're investing and when you'll need the money. Keep 3-6 months of expenses in cash so you never have to sell investments at the wrong time. Remember that every major crash in history has eventually recovered, though it sometimes takes years. Consider it a sale on future returns. If you're decades from retirement, crashes can actually help your long-term wealth building.

Dollar-cost averaging (investing the same amount regularly) removes the guesswork and emotional decisions. You'll buy more shares when prices are low and fewer when they're high. Trying to time perfect entry points sounds smart but usually backfires because nobody can predict short-term movements consistently. The best approach is often just getting started and staying consistent, rather than waiting for the "perfect" moment that may never come.