By Bretton Love
Panic is spreading internationally over the ongoing coronavirus. Countries are closing their borders, schools are shutting down, and public gatherings are being banned. In turn, this has led to a complete meltdown on the financial markets all over the world.
The situation has gotten so bad that March 16th marked the worst day on the U.S. stock market since 1987, and that is after two weeks of almost daily records losses.
Despite this, there are ways that we can all benefit from the collapsing financial markets and with a few simple tips, you can end up making a profit from the ongoing turmoil. On the following page, we will provide two strategies that you can apply already now, with three tips on how to do it most efficiently.
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Shorting the Market
The number one thing that all traders and investors should be doing right now is short trading or betting against the market. That means you will open positions where you predict that the market will continue falling, thus making a profit from the crash.
Now, most traditional stockbrokers have stopped short trading on their platforms since the market is falling so rapidly. There are still a few exceptions and we suggest you get started as soon as you can.
However, if you live outside of the U.S., there is an even better solution. By using online brokers offering CFDs on everything from stocks to commodities and cryptocurrencies, you can still short trade pretty much any asset in the world.
Better yet, all these brokers offer leverage meaning you can maximize your exposure on each position to increase your potential profit. To learn more about how to short trade the market and learn how to find the best brokers out there, we suggest you check out BullMarketz.com. Also, we’ll provide a few more hands-on tips further down in this post.
Preparing for Financial Growth
The second thing you should consider doing is preparing for when the market turns back up again. Even if we’re entering a full-blown recession, the markets won’t be falling forever. And when they turn back up, we can expect rapid growth. Therefore, we should all have a strategy for how to invest and trade when that occurs.
For long-term and rapid growth, traditional investments are usually the best option, although, you can still trade using online brokers if you feel like it. Just make sure that you analyze the markets properly and that you find a range of instruments and assets that are likely to start growing first.
3 Tips to Get You Started
To further help you put these two strategies to work, we have three manageable tips that anyone can wrap their head around.
- Learn How To Trade
The first thing you have to do, unless you already know how to, is learn how to trade. It’s easier than you might think and with free online resources, you can learn the basics quite fast.
A good place to start is the site that we linked in the sections above. They provide free trading information and great tips for beginners that have never traded before.
- Study The Fundamentals of Short Trading
Besides learning how to trade, you need to learn the concept of short trading. You see, short trading is a bit different from regular long trading and the more you know, the higher your chances of making a profit will become.
In fact, since the markets are collapsing right now, it’s advisable that you learn the fundamentals of short trading before you start educating yourself of regular trading.
- Place Investments
Lastly, it’s time that you start planning on how you’re going to invest when the markets turn again. There is no sure way of knowing when this will happen, so it’s up to each and everyone to analyze the markets in an attempt to predict what’s about to happen.
Keep in mind that a financial collapse or even a recession won’t last forever and that, sooner or later, the value of stocks and commodities will start increasing. And you don’t want to be the one person that misses out on that opportunity.
Even though we are experiencing the worst pandemic in recent history, it’s not all bad and there are ways that we can all benefit from the current situation, especially financially. With some basic knowledge, access to a great broker, and a decent strategy, there is actually quite a lot of money to be made from a market collapse.
But don’t wait. This is all happening right now and the longer you wait, the fewer chances you will have to make use of it all.