How do you “prepare” for a market crash?

1. Build Warchest
2. Prepare a shopping list of "fire-sale stocks with respective target prices/dividend yield".
3. Sit back, relax & collect dividends & re-invest thereafter

First and foremost I believe you should stay invested for as much as possible and for as long as possible.

So a base regular investment strategy should always be there.

But now let's say you have a bonus, or just extra cash lying not knowing what to spend on, you can choose to keep this aside for the time being and wait to enter the markets at your desired entry price with some buffer.

I'll never advice pulling out of the markets in anticipation of a crash or reducing or stopping totally the regular investment amount to only pounce when markets are down.

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”