Making Money When Markets Are Falling
It is possible. How does it work? It's not very complicated. Let me explain how this actually works.
Think about the housing prices over the last year. If you had an investment property and sold it last year at a hefty profit thats great. What if you wanted to get back in to the property market now? Would you be able to buy the same house back for less? Most likely. So what have you made in the process? Some decent profit. The reason being is that you sold something at higher price and can now afford to buy it back at a lower price and BANK THE PROFIT!
As a brief example, that's how shorting works. It is when you can sell something that you feel is over priced or at its peak for the moment and then buy it back at a lower price later and pocket the difference as a hefty profit.
Well, most of you have heard of hedging right? It's the same thing in essence. You are holding equity in shares and the capital gain only kicks in when the market is going up or is bullish. What if the market starts heading down against your position? Well, you and many others can hedge the position by taking a short in the market thereby insulating the loss on the share price to a minimum using hedging.
How does one take advantage of this? Well, instead of hedging yourself one is able to close or sell the shares and then actually short the same shares at a high in the price cycle to buy them back at a lower price. You score!
Have you heard of the guy that makes money when the markets are falling? This secret that only the professionals know about and use is about to be unleashed...
Short Term Trading or Day Trading is what it is often called. If you want to learn more about this we are holding a lunch talk on it next week Wednesday in Johannesburg. It's free.
Come find out how it actually works in practice. Stop worrying about the share market and come find out why so many people have made over 100% in the last few months on this market even when the shares were falling in price!
RSVP info@newsweek.co.za Johannesburg, South Africa
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Tuesday, September 23, 2008
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