Most people do not benefit when the stock market is going down. Usually, retail investors will buy a stock at a low price, and sell it for a profit at a higher price. In this article, we show you a trade that a trader made $600 in 6 days in doing so.
There are actually investment instruments in the market that will allow you to “sell short”, hence earning you money when the market goes down. The idea of selling short is to sell first a stock at a higher price, and then buy them back at a lower price. Your profits will be the difference in price, minus all transaction charges.
One of the ways of doing so is to use the instrument called Contract for Differences (CFD). In trading CFD, you actually trade using margins; hence you could lose or make money faster. In this article, we show you a recent trade by our guest writer, who is a professional trader by profession.
He made a profit of $600 in 6 days, and here is what some tips he shared:
– Understand technical analysis. It is provide great insights to market timing
– Always understand fully the instrument you are trading. If you are trading CFD, you should understand what are the risks involved. This is where many novice traders lost money.
– At the peak of good news and rising stock prices, the turning point is always round the corner, vice versa.
You might also want to check out Market Timing boost 32% returns within 3 months.