A market collapse is when the value of a security or asset falls sharply in a short period of time. In day trading, this can happen when there is a sudden sell-off or when news breaks that cause investors to lose confidence. A market collapse can also be caused by fraud or scams, such as the recent crypto scams that have been plaguing the industry. Whatever the cause, a market collapse can be a shock to the system and can cause serious losses for day traders who are caught off guard. The best way to protect yourself is to diversify your portfolio and have an exit strategy in place for when things go south. With proper planning, you can weather any market collapse and come out on top.