3 Ways to Profit from Falling Markets

It’s amazing how many people think that the only way to make money from the stock market is buying shares that are going to go up. Reality is that couldn’t be further from the truth.

The stock market goes up, down and sideways and good traders know how to profit from all positions.

It is inevitable that any trader that has been in the markets for any length of time is going to experience all of the above at some stage.

So either adapt to gain or, well, don’t. But you really need to understand how you can profit from falling markets if you’re not already.

Vince Stanziones System

Trading alongside Vince has been profitable already this year, with his system picking up on many of the best short positions to take. I still have long positions but Vince’s system spotted the weakness in the markets and I have traded them.

I spread bet many of these positions, but you could use traded funds or traded options.

Fixed odds Financials System

You can also use Binary.com to place fixed odds bets on the falling markets. The good thing about trading over at binary.com is that you know your total loss that you can expect if your bet loses. It’s a great way to get familiar with the markets without any major liabilities.

You can place simple fixed odds bets that can be as easy as predicting the market to rise or fall.

A good way to make fixed odds betting pay is using the strategies in the Stock Traders Almanac it’s incredibly easy to follow and offers proven long term results.

My spread betting system

If you haven’t used my system yet you can get it here, It’s totally free, really works and you should try it and see the opportunities for yourself. You can easily trade below the 200 day moving average and then trade the noise with the 10 x 20 day moving averages.

You don’t even need a subscription to any fancy share programme to do it. You can use the free charts on Google or Yahoo.

Look at this free chart from Yahoo of Tesco. A sell signal was given way back in August last year.

Tesco Sell Signal

 

Another interesting strategy worth considering is that weak markets present the option to find good stocks to buy that are undervalued. This is a strategy that Vince seems to be quite good at, as does Warren Buffet. Just because a price is falling, doesn’t necessarily mean the stock is bad.

I do not trade like that and buying stock in falling markets may well be something for the big investors club, but I can certainly see the angle.