3 Ways to Make Money When The Market Is Crashing:
On Monday, the Dow dropped more than 1,500 points. (see picture below)
And billions of dollars were lost in retirement accounts.
But it IS possible to make money in this kind of market, and here’s proof:
We did a 3-Day Live Trading Summit last weekend. As part of the event, we trade a LIVE account on the last day of the training.
And even though there’s more money in the account, we treat it like a $10,000 account – since most traders start with a small account.
As you can see, on the day the Dow crashed, our account was up $498 – almost 5% based on a $10,000 account.
So how can you make money when the markets are crashing?
Here are 3 ways:
1.) SELL stocks
Yes, it is possible to SELL stocks that you don’t own. You do need a so-called “Margin Account” for that, and it’s quite easy to get one. Once you have the right account, you can SELL a stock and then buy it back later at a cheaper price – if the market drops. As you can see in the screenshot below, we sold 3 stocks: MYGN, TECK and VRS.
2.) Trade PUT Options
Instead of SELLING a stock, you can buy a PUT option for that stock. A PUT option becomes more valuable as the stock falls. In our account, we traded 2 PUT Options: EMES and TECK
3.) Trade Inverse ETFs
There are “exchange-traded funds” (ETFs) that mirror the current market. As an example, DIA mirrors the Dow Jones, and as the Dow goes up, the ETF goes up. And there are also INVERSE ETFs, i.e. the ETF goes UP as the market goes down. As an example, if the Dow Jones goes down, the ETF SDOW goes up. I know, it sounds crazy, but these days there are many ETFs so that you can play any market direction.
These are 3 ways to make money even if the market is crashing.
The key is KNOWING what you are doing.
And as an active trader, THIS is what you do:
Take advantage of small swings in the market – whether it’s to the upside or the downside.
When you are TRADING instead of “buying and hoping”, you are no longer at the mercy of the markets. You’re no longer dependent on “Fund Managers” that just charge you a fee every quarter and don’t do anything for you.
Become a trader – and you are going to LOVE the volatility that we see in the markets these days.
If you want to know more about becoming a trader, join us in one of our upcoming Bootcamps:
It’s free 🙂
And share this message with somebody who needs to hear this!