How to Make Money in a Down Stock Market by W. Alan Gay
A key question my students often ask me is "With the stock market down can I still make money trading stock " My reply is that it really dependent on the kind of investments you hold.
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.
Short positions however will allow you to make money whether or not the market goes down. These types of investments are only available to companies individuals who trade individual accounts.
You can take charge of your investments 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.
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.
Luckily there are strategies to mitigate the anxieties of a new trader.
Your first goal is to find a program that will provide you low risk stock recommendations. Me 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 form trade. & 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.
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 a step by step process you can achieve that goal.
W. Alan Gay has been a stock trader trainer for fifteen years. His free report describes Alan's voyage to becoming successful at trading stocks stocktradingtruths. com gives useful techniques he his students have used to repeatedly trade successfully. Click to obtain a free copy of his report learn more about how you could be trading stocks successfully stocktradingtruths. com in as little as two weeks. How to Make Money in a Down Stock Market
