Make Money Trading Even When the Market is Down
One of the core questions my coaching clients have asked me over the past few months is: "Can I still make money in stocks with the market down like its been?" The answer is yes, or no, depending on the type of investments you have.
If you hold stocks, stock mutual funds, or your investment is in the standard asset allocation accounts the answer is probably no. The simple explanation for this is that these types of accounts are so large that they are not allowed by the regulators to hold short stock positions. This means that if the stock market goes down over the next 3-5 years, the accounts will lose money every single 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.
If its that easy, why isnt everyone doing it? For one thing, it requires approximately $25,000 to set up an individual account. Many people dont have that kind of investment or are unwilling to risk it. And, it is true that stock trading for a novice can be very challenging. If you do not know what you are doing, you can lose all your money very quickly.
Luckily, there are strategies to mitigate the anxieties of a new trader.
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.
Secondly, its important to find program that walks you through every step to success. For example, in my 9 day trading class the students learn every aspect of using a turnkey system that is both safe and profitable to buy and sell short stocks, so that you can make money even if the stock market goes down.
The goal with any system you choose is to find one that will give you stock trading success while those around you complain over poor performance; by making sure that you are working with experienced advisors and a step by step process, you can achieve that goal. - 23217
If you hold stocks, stock mutual funds, or your investment is in the standard asset allocation accounts the answer is probably no. The simple explanation for this is that these types of accounts are so large that they are not allowed by the regulators to hold short stock positions. This means that if the stock market goes down over the next 3-5 years, the accounts will lose money every single 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.
If its that easy, why isnt everyone doing it? For one thing, it requires approximately $25,000 to set up an individual account. Many people dont have that kind of investment or are unwilling to risk it. And, it is true that stock trading for a novice can be very challenging. If you do not know what you are doing, you can lose all your money very quickly.
Luckily, there are strategies to mitigate the anxieties of a new trader.
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.
Secondly, its important to find program that walks you through every step to success. For example, in my 9 day trading class the students learn every aspect of using a turnkey system that is both safe and profitable to buy and sell short stocks, so that you can make money even if the stock market goes down.
The goal with any system you choose is to find one that will give you stock trading success while those around you complain over poor performance; by making sure that you are working with experienced advisors and a step by step process, you can achieve that goal. - 23217
About the Author:
W. Alan Gay has been a day trader and stock trading mentor for 15 years. His free report describes Alan's voyage to becoming successful at trading stocks and gives practical 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 @ 12:26 AM
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