Markets Plunging All Over the world – Time to bet down? $SDS

An article by pgupta

Its very depressing to see your portfolio in red every day five times a week! Obvious question in everyone’s mind right now is what to do! People have the tendency. There are several ways to make money in a bear market, some of them are listed below:

Short stocks: Shorting can be very profitable in a bear market like this. However keep in mind to be vigilant. You need to always remember that MOST people lose money in trading, specially in their first year of trading. So if you decide to short a stock, be sure to keep an eye on the stock price on a regular basis. One good news is all it takes for the market to rally. If you see signs of bounce play, thats a sign for you to check out!

Invest in Reverse ETFs: These ETFs are inverse of the popular stock indexes. Shares of these ETFs are traded just like any other share. SDS is a very popular reverse index ETF to look at. Its actually double inverse of S&P 500. So it doubles the drop in the S&P for you. You can make really good money if you play it carefully. Again remember, market is for losers!

Buy at dips, sell on news: Thats the old tested techniques. Buy after a stock with good fundamentals has dropped in few sessions and see on the immediate bounce. Do NOT hold stocks for too long when market is volatile.

Cash is the king: Be sure to keep some cash in your account so that you can use it when the unexpected happens and you have a lifetime opportunity to go “all in”!