| Finding the best stocks for stock trading isn't as | | | | short term. Throughout history, the biggest |
| difficult as it used to be. In fact, the stock market | | | | short-term moves on a percentage basis have been |
| these days makes trading stocks easier than ever. If | | | | on the down side. |
| you want to buy stocks and hold them, that's one | | | | A few years ago, taking a short position (betting |
| thing. But if you're set on trading stocks, there are | | | | DOWN) was not as easy as it is today. For example, |
| some out there that are actually designed for that | | | | you could short a stock or buy PUT options. Many |
| purpose, believe it or not. | | | | people who were interested in stock trading were |
| I got into stock trading and options trading in 1973. | | | | not inclined to do either because they found both |
| To me, nothing was more frustrating than calling the | | | | alternatives intimidating. |
| stock market correctly, and then making the wrong | | | | Now you can buy stocks that go up big time when |
| stock picks. These days, finding the best stocks to | | | | the market or a segment of it falls. These are called |
| trade is virtually a piece of cake. | | | | LEVERAGED INVERSE ETFs. These stocks trade like |
| Start by asking yourself what segment of the stock | | | | any other stock. They are actually funds (exchange |
| market you want to trade. Then decide whether you | | | | traded funds) designed to track a stock index |
| want to bet UP or DOWN. Then, how much action | | | | inversely with 2X or 3X leverage. They accomplish |
| do you want in terms of volatility or leverage? | | | | this by investing in derivatives. |
| When the stock market is on fire, you don't have | | | | To you, it means this. If you think that stocks in |
| time to analyze a long list of traditional stock issues. | | | | general are in for a nasty fall, you can make a simple |
| Be prepared ahead of time. | | | | stock purchase and get a piece of the action. For |
| Leveraged and inverse ETFs are not for people who | | | | example, stock symbol (SDS) is a heavily traded ETF |
| want to buy stocks and hold them till the cows | | | | that attempts to inversely track the S&P 500 |
| come home. They are designed for stock trading. | | | | Index with 2X leverage. If the market as measured |
| Whether you want to bet on the up side or down | | | | by that index falls 2% in one day, SDS should go up |
| side, they are in my opinion the best stocks to play. | | | | about 4%. |
| Most people think of stock trading in terms of | | | | If you're into stock trading, ETFs were made for |
| making quick profits when the stock market is going | | | | you. You can bet on the market in general or on |
| up. I have found that the real profit potential in | | | | various sectors including gold, real estate, and financial |
| trading stocks is on the down side. Let me tell you | | | | stocks. Not all ETFs employ leverage, but many do. |
| why. | | | | In stock trading don't overlook the action on the |
| Let's take a stock market that is full of uncertainty | | | | down side. If you're really good at trading stocks, all |
| as in the fourth quarter of 2009. Stocks had moved | | | | you need is market volatility. And the biggest profits |
| up over 50% in only 7 months. One fly in the | | | | can be made when the stock market has a really |
| ointment could cause heavy selling, especially in the | | | | bad day or two. |