Managing Money in a Falling Stock Market
By Michael Holte
We all know the stock market has been on a terrible slide for a year. Going up only to turn around and drop like a rock. Selling short used to be the method of choice to make money in a falling market and still is in certain situations. Exchange Traded Funds ETF's have burst onto the scene now with some moving two to three times the underlying market move. They are available for individual market sectors and some go up when the markets go down. Meaning you do not have to short the market any more, simply buy into a Select Sector Short ETF.
The trick is in knowing when to enter and exit these funds. Today, the markets are not the same as our parents market. Where you would buy a dividend paying stock and hold it for years. The market volatility now requires managing every trade with a plan, an entry price, target to take profits, and an exit price to cut losses if the trade fails.There is no reason to allow your portfolio or 401k to fall with the overall market.
Start with a small position, maybe twenty five shares, and begin to develop the confidence to place trades knowing where you will take profits and if you are wrong you will stop out. There are many on-line brokerage firms with reasonable fees to make trading in and out of a trade very inexpensive. Take an active role in your finances, buy educating yourself to the many Exchange Traded Funds, inexpensive brokerage firms, and you might be surprised how well you can do. Millions of people make money in the Stock Market and there is no reason you can't be one of them.
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Come to http://www.greenbacktrading.com and sign up for a subscription. Get some help from some one on your side.
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