| The worldwide sell-off in stocks continues. There will | | | | fail to do the right thing because they don't have |
| be rallies, and those bear market rallies may be | | | | time to learn one more method of money |
| intense. But they will all eventually fail and then the | | | | management. But learning the mini-Dow, a powerful |
| selling will begin all over again - until we finally hit | | | | global market, is well worth the time. And it won't |
| bottom. Don't hold your breath. | | | | take long to get the hang of it. Up or Down. How |
| You might as well make some money while the | | | | hard can it be to learn two directions? |
| stock market makes history. There are legal ways to | | | | In May 2008 the mini-Dow Jones was near 12,600. In |
| do this, despite what you've heard about curtailing | | | | October 2008 the market dipped below 8,000 before |
| "short selling" of some stocks. There are rogue | | | | rebounding. In this market it is as easy to trade |
| brokerages out there that have been using illegal | | | | down as it is to trade up. When you know what |
| short-selling techniques in the stock market for years. | | | | you're doing, there is no need to pray for a Bull or |
| They are thieves and deserve proper punishment. | | | | Bear - either way is an opportunity. Each tick in the |
| But I'm not suggesting you short-sell stocks. Let's | | | | mini-Dow futures market equals $5. That means the |
| move to another market where the mechanics of | | | | drop from May to October equaled about $4,600 - |
| selling are well-established, transparent - and entirely | | | | per contract. What if you had sold 10 contracts? |
| legal. | | | | Not that you and other traders would have caught |
| The stock index futures markets ride with the ups | | | | every tick of this recent trend down. But even 25% |
| and down of the stock market. The difference is | | | | of such a move with five contracts would net |
| speculators can use relatively small amounts of | | | | $5,750. Maybe you were in for a few days, then out. |
| money to leverage powerful positions in the market. | | | | Then in again and out again. How many times can |
| They never actually buy or sell stocks. The individual | | | | you do this? As many times as you wish. It's a legal, |
| is merely "shorting" or "selling" when the index trends | | | | acceptable, established aspect of trading. It's called |
| down, or going "long" or "buying" when the index is | | | | hedging. All experienced investors know the value |
| rising. | | | | and importance of hedging. Unfortunately, many |
| Speculators must of course open a futures account | | | | individual investors do not. |
| to trade this way, because it requires margin to | | | | Are there risks when trading the mini-Dow Jones? |
| trade stock indexes and other futures. Margins will | | | | Yes. You must learn before you earn. And past |
| fluctuate as the fortune of any given market grows | | | | performance is not necessarily indicative of future |
| or shrinks. It is important to keep an eye on these | | | | results. |
| changes, which are posted regularly at all reputable | | | | Even so, historically, fortunes are made by following |
| online brokerage firms. (Notice I used the word | | | | trends. A down turn may cause many investors to |
| reputable.) | | | | panic - and make no mistake, today's global financial |
| Yet the margin for the mini-sized Dow Jones futures | | | | pain is real and will take years to resolve - but it is a |
| market makes it accessible to small and large | | | | trend, nonetheless. Learn to ride it - legally, wisely, |
| accounts. If stock investors had used this market to | | | | carefully - and you may weather a storm that the |
| hedge their stock portfolios, today they might not be | | | | history books will not soon forget. |
| running for shelter. In some cases individual investors | | | | |