Stock Markets Exposed - How do you make money from the stock market when it is going down?

How do you make money from the stock market when it is going down?

I went to a shareholding course and they said it is possible to make money while the market is going down. The course was designed by SITM.

Public Comments

buy low sell high........blue chip is the way to go unless you can re invent the wheel ...... most are banking on drug companys thats why you see so many commercials........go for rock solid energy based companys.......slow return but safe.
You can short the stock. Basically you sell the stock at its current price and buy it back later. If it goes down you make money, if it goes up then you lose. You can also use options. By buying a put you get the right to sell the stock at a certain price for a given period of time.
Easy. Short the market. You can purchase ETF's that mimic a short position in stocks. But it's not for the faint of heart. People lose a ton of money trying to short the market.
Short the stock and watch your $$ grow in bearish market
There are actually a number of ways. Truth be told, making money in a bear market is a whole lot faster. Ill just run through a few of the ways to help get your started. You can short sell the stock. Basically you Sell first, then buy back later. For instance, Sell at $10 and if the stock falls to $8, buy it back. You profited $2. You can use options, and this get long. Buy Put Options: The value of the Put Option rises as the stock value falls. Sell Covered/Naked Call Options: If you own a stock and think that its going to fall in price, you can sell calls. This, contrary to belief is closer to short selling stock than buying Put Options is; in that you sell high and buy back low. Naked Calls is when you sell a covered call without owning the stock. Very risky and advise you to not use this method. If you dont know options, I highly suggest educating yourself first. Last, own companies with a high dividend pay out. I hope this helps. If not, Please contact me. Christian Nago CEO & Chief Investment Officer www.intrepidtradings.com