Sunday, June 16, 2013

How to earn money when the stock market is going down

Recently, Brazilian stock market has been going down a lot (IBOV reached the lowest level since August 2011). This article may help you to earn money when the stocks are going down!
Good traders know that it is possible to earn money and make some great investments in these moments.
For example, a lot of people are losing money with OGXP3 (reduced 93% in 1 year) and CSNA3 (reduced 66% in 1 year) because they did not used Stop Loss. On the other hand, there are some people who are earning EXACTLY the same amount in the same period. HOW?!?!?
To sum up:
1) You have to identify stocks with a low tendency
2) You rent the stock (for example for 3, 6 or 12 months) - You will pay some money for this rent (it is not expensive)
3) The stock will appear in your custody (as you have bought it)
4) YOUR GOAL is to find the correct moment to SELL the stock
5) You BUY the stock after it reduced even more its price. Therefore your earned money when the price is reducing.
6) At the end of the rent, you have to return all stocks or rent them again.
CONCLUSION: After you rented, it is exactly the same process of buy/sell (but now, it is sell/buy). You will have the same effort to analyze stocks going up or going down!


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