You Too Can Make Money on the Stock Market Even in a Down Market
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.
Trading through an individual trading account rather than a fund gives you the leverage to control your investments and make profits daily. The reason for this is that you can buy low if you expect an increase in the stock value, or sell short if you expect it to decline.
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.
First, find a trading program that gives you low risk trade picks. The program I use and that I recommend to my coaching clients has a 31 year average experience level for its trade pickers. So a trader can simply follow their trade recommendations and have a very high probability of realizing returns. If you remember to set your stops at a level that suits your comfort zone, you will have a maximum loss that is very small and insignificant over the course of time.
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.
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. - 23212
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.
Trading through an individual trading account rather than a fund gives you the leverage to control your investments and make profits daily. The reason for this is that you can buy low if you expect an increase in the stock value, or sell short if you expect it to decline.
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.
First, find a trading program that gives you low risk trade picks. The program I use and that I recommend to my coaching clients has a 31 year average experience level for its trade pickers. So a trader can simply follow their trade recommendations and have a very high probability of realizing returns. If you remember to set your stops at a level that suits your comfort zone, you will have a maximum loss that is very small and insignificant over the course of time.
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.
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. - 23212
About the Author:
W. Alan Gay has been a stock 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 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 fourteen days.
posted by X - Men @ 2:13 AM
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