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Making money in a down market
posted by bchataroo on 7 months ago
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yes, when the S&P goes down, SH and SDS go up.

So am I correct in thinking that the SDS will go up when the S&P goes down. Thanks for
the info.

This is an awesome forum!

here is one of the many ways you can play it, but this is the least complicated. SH is an
inverse ETF that shorts the S&P500 and gives around a 4-5% dividend. make this half of the
money you have in the market, then pick and choose names like KO, MCD, MSFT etc. to be
long. keep 20% cash. on big down days (if you can predict such things) get some SDS and
then sell it at the end of the day for a day trade. when you think there are big pops,
pick your sector and go double long.

also, dont start shorting right now. wait for a big pop in the market, this is very
oversold and it isnt safe to be short at these levels.

SDS or something similar just using limit orders work well also.Time frame is the key.

While I am still a relative noob at stockpicking myself, I think you would be better off
looking for undervalued stocks that have fallen simply because the market is falling. in
a down market more and more good companies become bargains that will pay off when the
market goes back up even if that is still a whiles away.

as far as options or anything along those lines i don't know enough to make any
suggestions

I am new to the stock game. Trying to understand the avenues to make money in a down
market ( such as "put" options ) Any help would be appreciated.

Thanks

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