Make Money Trading Even When the Market is Down
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.
The answer is no if you are holding your investments in a stock fund, mutual funds, or other standard asset allocation accounts. The reason for this is that these large accounts are regulated and do not allow short stock positions. Therefore, if the market declines in the next 3-5 years, as it most likely will, your account will lose money year after year.
If you use short positions as your investment strategy, you will be able to make money no matter if the market goes up or down. However, short position investments are not available unless you trade through individual accounts.
If you trade through your individual account rather than a fund, it is possible to for you to take charge of your own investment and make money in the stock market almost every day. This is because regardless of the direction a stock is moving, you can make money, by buying if you expect it to go up, or selling short if you expect it to go down.
Well, then, why doesn't everyone do it? It does take an investment of about $25,000 to set up your individual account. Some people don't have the funds, or are reluctant to risk it in an individual account. After all, trading stock for a novice can be complicated. You could lose all your investment fast if you aren't sure what to do.
I can suggest a few things to minimize your concerns.
Your first goal is to find a program that will provide you low risk stock recommendations. Me and my coaching clients use a program that boasts stock pickers with 31 years average experience. With such experienced pickers, a trader can follow their picks with a high probability that they will profit from the trade. And, if you also set your stops at a low risk level, your loss over time will be small.
Its also critical to find a system that will walk you step by step until you achieve your goals. As an example, in the nine day trading course that I lead, the participants actively learn every piece to the process it takes to successfully trade stock whether it goes up or down.
Despite the program you choose, if it has advisors with the needed know-how and experience as well as a turnkey process you can follow, you can be enjoying profitable stock trading success while those around you are complaining over the declining markets. - 23162
The answer is no if you are holding your investments in a stock fund, mutual funds, or other standard asset allocation accounts. The reason for this is that these large accounts are regulated and do not allow short stock positions. Therefore, if the market declines in the next 3-5 years, as it most likely will, your account will lose money year after year.
If you use short positions as your investment strategy, you will be able to make money no matter if the market goes up or down. However, short position investments are not available unless you trade through individual accounts.
If you trade through your individual account rather than a fund, it is possible to for you to take charge of your own investment and make money in the stock market almost every day. This is because regardless of the direction a stock is moving, you can make money, by buying if you expect it to go up, or selling short if you expect it to go down.
Well, then, why doesn't everyone do it? It does take an investment of about $25,000 to set up your individual account. Some people don't have the funds, or are reluctant to risk it in an individual account. After all, trading stock for a novice can be complicated. You could lose all your investment fast if you aren't sure what to do.
I can suggest a few things to minimize your concerns.
Your first goal is to find a program that will provide you low risk stock recommendations. Me and my coaching clients use a program that boasts stock pickers with 31 years average experience. With such experienced pickers, a trader can follow their picks with a high probability that they will profit from the trade. And, if you also set your stops at a low risk level, your loss over time will be small.
Its also critical to find a system that will walk you step by step until you achieve your goals. As an example, in the nine day trading course that I lead, the participants actively learn every piece to the process it takes to successfully trade stock whether it goes up or down.
Despite the program you choose, if it has advisors with the needed know-how and experience as well as a turnkey process you can follow, you can be enjoying profitable stock trading success while those around you are complaining over the declining markets. - 23162
About the Author:
W. Alan Gay has been a stock trader and coach for 15 years. His free report describes Alan's voyage to becoming successful at trading stocks and gives useful techniques he and his students have used to consistently trade profitably. Click to obtain a free copy of his report and learn more about how you could be trading stocks profitably in as little as two weeks.
posted by X - Men @ 2:14 AM
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