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How to Make Money When Markets Go Down

One of the more common bits of trading dynamics that most new traders are unaware of is the fact that you can make money when prices go down. Yes, you read that right. It is possible to profit from a price that is losing value. Pretty cool, huh? I talk more about that and show how even during a very brutal month for the stock market, I was still able to grow my overall account.

My October Trading Results

Trading 101: What is “Shorting” / “Going Short” HERE

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Transcript:

Believe it or not, when markets crash,your account can still go up.Here's how.I realize the name of this video and the intro may seema little too good to be true, but it's actually not.Now, it is too good to be true in the sense of,you need to be very disciplined,you need to be very careful, you need to be very wise,in order to take advantage of this dynamic of the market.But it's by no means impossibleand it's not too good to be true in the general sense.And yeah, prices go down,most people think, oh man, prices are going down,the markets are going down, everything is just failing,my account is shrinking.And that is true to an extent,if you are not able to captureall the dynamics of the market that are offered to you.And the dynamic here that is missing is called short.Now, when I first got started, I thought short meant,well, you like buy something for a short amount of timeand then you sell it.Or, you know, you buy it, or you're thinking of buying it,but your intention the entire time is,I'm just gonna hold on to it for a short amount of timeand then I'm gonna get rid of it.But that has nothing to do with it at all.Shorting means taking advantage ofwhen prices are going down.And when prices are going down, if you do a short right,your money is gonna go up.Because when going short, when prices go down,you are actually making money.For lingo's sake, shorting would be another terminology.Going short, go short, any of those variables representthe idea that prices are going down,but in these situations, you can actually make money.Wait, you're saying that if prices go down,I can make money by shorting?Yes.How all that possible?I'm not gonna go over that.Down in the description box below,if you're watching this on YouTube,or just down below the video,if you're watching this at claytrader.com,I've done the Trading 101 video where I explainkind of the behind the scenes of how shorting actually worksand how this is possible.But for this video, I just wanna make you aware thatthere is a portion of the market, a dynamic out there,that does allow you to make money,even as prices are going down.Because when you stop and think about it,it's kind of depressing if prices go downand you lose money, there's nothing you can do.Talk about being handcuffed.And a lot of people aren't aware ofthe whole shorting angle, but it's very beneficialbecause it does give you full flexibility.I mean, think about it, as a trader, how nice is that,to know that it doesn't matter what a price does,you can still make money on it?Very, very freeing.Now, with all this being said,I'm well aware that right now, I'm just talking in theory.I'm talking in kind of just general ideasthat hey, there's this thing called shorting,when prices go down, you can make money,and all this is very kind of textbook right now.So what I wanna focus on is,and we'll put it up on the screen,but this is the month of October in 2018and you can see that during this month, it was rough.The markets went down quite a bit.Now up on the screen, this is my personal trading accountfor the month of October.And in the bottom right-hand corner,you'll see that I was up a little over 11,000 on the month.So how is this possible?Well, because shorting exists, you can still make moneyand you can see that, despite the overall marketsgetting absolutely beat up in October,again, October of '18,I was still able to create account growth.So if I can encourage you to explore more into shorting,how to short, things like that, I hope you do that.But the big warning here, and what I want to end on,is that you need to be very, very careful of this.So using the red to try to imply some fearbecause the problem and the danger with shortingis that a price can go up and up and up and up forever.So if you think a price is gonna go down,however, the prices keep on going up,your loss can be theoretically infinite.Now, it would never reach that pointbecause you would get what is called a margin call,but the point here that I'm trying to drive across is,yes, shorting is great, yes,shorting offers full flexibility,but it needs to be approached in a very disciplined manner,where you actually have a strategy.Because if you were just out there,starting to randomly short stuff,you can get yourself in a whole lot of hurtbecause again, prices can go up infinite.If you just buy something, the lowest it can go is zero.So therefore, you know, your loss is going to be limitedto whatever you put into it.But with shorting, because prices can go forever,in theory, your loss could be infinite.Point being, again, manage risk,and you have to understand how it all works.If you're interested, I do offer courses,I do offer training on how you can approach shortingwith risk, you know, risk at the forefront,risk management at the forefront of strategies.So you can go to claytrader.com for that.And, you know, I have ashorting for profit course specifically.So all those things, I can assist with that.But even if you don't go to, you know, take my courses,be aware, you know, I want to spark your interest,shorting is available, shorting is very possibleand can work, but you have to be careful with it.So don't just go start to randomly do it.You can get yourself in a whole lot of trouble.Hopefully this video offers up not only what shorting is,but also, you know, by showing the results of October,and then my account, you know,it is something that I'm not just talking in theory here.It can be done, but you've gotta be careful with it.If you're out there trading alone currentlyand maybe are in the market, looking for a community to jointo assist you in your trading or to just help you,you know, get another set of eyeballs,then I do have a private trading communitywhere you can trade alongside meand other experienced traders.So what you see popping up on the screen right nowis both an information link,so if you click on the inner circle one,that is going to take you to the pagewhere I explain all the details ofwhat exactly come with the community,both the chat room and the newsletter.And then the other image that has popped up isa behind-the-scenes tour, where you can seeexactly what is going to be contained within the community.I take you through, like I said,a behind-the-scenes tour of everything.And then you'll know preciselywhat you are getting when you join.So definitely check that stuff outif you are interested and thinking about, you know,wanting to join a community.And let me know if you have any questions.

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