Make Money Trading Even When the Market is Down
2:15 AM
My clients often ask me if they can still make money trading stocks even when the stock market is down. The answer depends on the kind of holdings an investor has.
Stock holdings, mutual funds, or asset allocation investment accounts make it very difficult to make money in a down market. This is because these investments are held in large, regulated accounts that don't allow short stock positions. So, if the stock market goes down, as it probably will over the next three to five years, these accounts will lose money year after year.
Using the short position strategy, though, will give you the leverage to make money both when the market is up and down. But you can only take advantage of short positions if you trade through an individual account.
You can take charge of your investments and profit nearly every day by trading through an individual trade account rather than a fund. That way, despite whether a stock value increases or decreases, you can make money, buy buying or selling short, as applicable.
So, if that's all there is to it, why isn't everyone taking advantage of it? Well, first, you have to be willing to invest around $25,000 into an individual trading account. A lot of folks don't have the money, or don't want to take the risk. And there are a lot of challenges for a new trader. You could lose your money fast if you don't know what you're doing.
I can suggest a few things to minimize your concerns.
The first step is to find a trading system that provides you minimal risk recommendations. The system I and my students use has stock pickers with an average experience level of thirty one year. This means that you can just follow their suggestions and are fairly assured that you will make a profit. And if you set your stops to tie in with your personal risk tolerance level, your loss over time will be minimal.
You also need to find a program where you will walk through step by step until you feel comfortable trading on your own. To illustrate, I teach a nine day course where my students are taught each and every step needed to successfully trade stocks on their own, no matter if the market is up or down.
Regardless of the system you choose, if you make sure that it has experienced advisors and a program that walks you through every step of the way, you can be smiling all the way to the bank while everyone around you is moaning about the poor performing stock market.
Stock holdings, mutual funds, or asset allocation investment accounts make it very difficult to make money in a down market. This is because these investments are held in large, regulated accounts that don't allow short stock positions. So, if the stock market goes down, as it probably will over the next three to five years, these accounts will lose money year after year.
Using the short position strategy, though, will give you the leverage to make money both when the market is up and down. But you can only take advantage of short positions if you trade through an individual account.
You can take charge of your investments and profit nearly every day by trading through an individual trade account rather than a fund. That way, despite whether a stock value increases or decreases, you can make money, buy buying or selling short, as applicable.
So, if that's all there is to it, why isn't everyone taking advantage of it? Well, first, you have to be willing to invest around $25,000 into an individual trading account. A lot of folks don't have the money, or don't want to take the risk. And there are a lot of challenges for a new trader. You could lose your money fast if you don't know what you're doing.
I can suggest a few things to minimize your concerns.
The first step is to find a trading system that provides you minimal risk recommendations. The system I and my students use has stock pickers with an average experience level of thirty one year. This means that you can just follow their suggestions and are fairly assured that you will make a profit. And if you set your stops to tie in with your personal risk tolerance level, your loss over time will be minimal.
You also need to find a program where you will walk through step by step until you feel comfortable trading on your own. To illustrate, I teach a nine day course where my students are taught each and every step needed to successfully trade stocks on their own, no matter if the market is up or down.
Regardless of the system you choose, if you make sure that it has experienced advisors and a program that walks you through every step of the way, you can be smiling all the way to the bank while everyone around you is moaning about the poor performing stock market.
About the Author:
W. Alan Gay has been a day trader and stock trading mentor for fifteen years. His free report describes Alan's journey to becoming successful at trading stocks and gives practical tips he and his students have used to repeatedly trade successfully. Click to obtain a free copy of his report and learn more about how you could be trading stocks successfully in as little as fourteen days.
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