Stock Markets Exposed
People say you can make money in the stock market whether the market is up, down or sideways. How do you...?
make money in the stock market when it is sideways?
Public Comments
- People say a lot of things. That doesn't make them easy or even true.
- stay away keep cash on hand right now 13 week t-bills
- Stocks never move literally sideways. This term usually means the stock is staying in a narrow range. In this case you have 2 choices. (1) swing trading - buy the dips and sell the rallies and repeat. (2) sell out of the money call and put options outside the range. When they expire, you keep the premium money.
- <<<How do you make money in the stock market when it is sideways?>>> If you strictly limit your trades to stocks, the only way to make money in a sideways market is to short shares and collect interest on the money you received from shorting the stock. With interest rates as low as they are now, this is not a very attractive strategy. If you are less strict, and include derivatives of stocks, you can make money in a sideways market by selling stock options. This strategy can make modest profits if the stock continues sideways, but can have large losses if the stock price makes a large move.
- I love trading options In a Bull (Up) market you would buy Calls In a Bear (Down) market you would buy Puts In a sideways market - well, there are always stocks that are moving up or down, so you need to scan for those. Get educated - check out some lessons at OptionsXpress
- yes its true!! this is done by short selling. Suppose u r my friend & i had a news that ur cell phone which u have, its value is going to be decreased by 10% in a day or so. So i BORROW ur cell phone NOW and sell it at the present market price of $100 (for example). By tomorrow the market prices are DOWN to $90. I visit a Showroom buy the same handset at $90 and give u the same. Even if u charge me 1$ as rent. I still made $9 as profit. when the market price of cell fell down by 10%. 1 % here is the brokerage. i have organized a weekend course on stock market coming saturday. let me know if u will b interested. course details at http://www.trade.hashcod.com/ mail me - percy3687@gmail.com
