Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.

Join Dstockmarket Telegram Group

Join Dstockmarket Facebook Page

How To Profit From Stock Declines And Market Crashes

Is there a way to really profit from stock declines and market crashes? Yes there is and the way to do it is by shorting stocks.

When a person shorts a stock this is what happens:

  • You make money when the stock goes down
  • You sell the stock first and buy them back later at a lower price

For those who do not understand the mechanics of short selling, just take my word for it that you can make money when a stock drops.

The benefit of short selling is that you get to participate in the decline of a stock and make money from that decline. There are however risks that apply to shorting a stock. Such as when the stock gaps up and move way above your shorting price. In theory, your loses can be unlimited. However, with proper money management and a sound strategy, short selling can be a very lucrative and profitable trading strategy.

Do remember that stocks fall 3 times faster than they rise. 

So you not only make money when a stock falls, you get to make it faster as well.

A good trader can make money whether the stock market is in a bullish run or in a bearish run. As you progress in this course you will learn that shorting stocks is just as easy as buying a stock.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Chart Lessons From AGN - Triangle Breakout In Daily Chart

    Dec 04, 19 12:59 PM

    In this lesson, we will learn how a triangle breakout when AGN is in an uptrend help to send AGN higher tremendously.

    Read More

  2. US Stock Market Analysis December 2019

    Dec 04, 19 10:23 AM

    In this page, we will have a look at the US stock market and analyze where the SPX might be going.

    Read More

  3. KLCI Analysis December 2019

    Dec 04, 19 10:15 AM

    Welcome to the month of December. What is in store for the KLCI? Read more to find out. Will update this page frequently so come back for more.

    Read More

  4. Chart Lessons From SPX - 60 Min Ascending Triangle Breakout

    Dec 03, 19 08:59 AM

    In this lesson, we will see how the presence of a 60 min ascending triangle at the 60 min 200 MA help to point to a short term breakout.

    Read More

  5. The 4 Stock Market Stages Every Stock Will Go Through

    Dec 03, 19 03:43 AM

    Learn about the stock market stages that will help you unlock profit potentials in the stock market.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.