It’s one of the most common questions we get. “How can I make money when the market is going down?”
The truth is simple: there’s no such thing as a bad market. There is, however, bad information and if your current trading strategy is lagging the market, well then it’s going to be very difficult if you don’t see these declines coming.
That being said – our customers are finding plenty of opportunities to make money in these down markets. We share their strategies below.
Market Forecasts for PowerShares QQQ ($QQQ), ProShares UltraShort QQQ ($QID), Diamonds ($DIA), ProShares UltraShort Dow 30 ($DXD).
Here are two ways to make money in a declining market:
Selling Short
Smart traders know that the market is a two-way street and that you can trade from the short side. VantagePoint’s forecasts provide insight 1-3 days in advance. With that information, traders can take a short position and actually make money in a declining market.
However, not every trader is comfortable with this technique. No worries, there’s another way.
Go Long on Inverse ETFs
“For every action, there is an equal and opposite reaction.” [bctt tweet=”Newton’s 3rd law of success can be found in the #markets, you just have to know where to look.” username=”markettech”]. When a market is declining, there are inverse ETFs that will be going up. VantagePoint makes it easy to scan for opportunities and find these opportunities ahead of time.
Are you feeling anxious in the market? Why not adapt a strategy that has been consistent and accurate at forecasting markets and helping traders make money for over 25 years.