Wednesday, July 18, 2007

Making Money in a Down Market

Many traders and investors shun the idea of short trading. There are several reasons they point to in order to justify not taking advantage of this potentially profitable technique. The first reason is “the market has an upside bias.” This is true, however, that’s a long term bias. Traders concentrate on the short term. Every stock moves through cycles. Its inevitable that they will undergo within these limitations, shorting provides ample opportunity to profit when the market begins to corrections and downturns. In fact, the market falls approximately one third of the time. If you’re not taking advantage of it, you are foregoing one third of your opportunity not only for profits, but fast profits. When stock prices fall, they tend to do so much faster than t View the rest of this article


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