Make Money Trading Even When the Market is Down - By: W. Alan Gay

My clients often ask me if they can still make money trading stocks even when the stock market is down. The answer depends on the kind of holdings an investor has.

If you hold stocks, stock mutual funds, or your investment is in the standard asset allocation accounts the answer is probably no. The simple explanation for this is that these types of accounts are so large that they are not allowed by the regulators to hold short stock positions. This means that if the stock market goes down over the next 3-5 years, the accounts will lose money every single year.

Short positions, however, will allow you to make money whether or not the market goes down. These types of investments are only available to companies and individuals who trade individual accounts.

If you trade through your individual account rather than a fund, it is possible to for you to take charge of your own investment and make money in the stock market almost every day. This is because regardless of the direction a stock is moving, you can make money, by buying if you expect it to go up, or selling short if you expect it to go down.

Well, then, why doesn't everyone do it? It does take an investment of about $25,000 to set up your individual account. Some people don't have the funds, or are reluctant to risk it in an individual account. After all, trading stock for a novice can be complicated. You could lose all your investment fast if you aren't sure what to do.

Luckily, there are strategies to mitigate the anxieties of a new trader.

The first step is to find a trading system that provides you minimal risk recommendations. The system I and my students use has stock pickers with an average experience level of thirty one year. This means that you can just follow their suggestions and are fairly assured that you will make a profit. And if you set your stops to tie in with your personal risk tolerance level, your loss over time will be minimal.

You also need to find a program where you will walk through step by step until you feel comfortable trading on your own. To illustrate, I teach a nine day course where my students are taught each and every step needed to successfully trade stocks on their own, no matter if the market is up or down.

The goal with any system you choose is to find one that will give you stock trading success while those around you complain over poor performance; by making sure that you are working with experienced advisors and a step by step process, you can achieve that goal.

About the Author

W. Alan Gay has been a day trader and trainer for fifteen years. His free report describes Alan's journey to becoming successful at trading stocks and gives useful tips he and his students have used to repeatedly trade successfully. Click to obtain a free copy of his report and learn more about how you could be trading stocks successfully in as little as two weeks.

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