It’s possible to make money investing against the trend, but it’s not for beginners. It seems the trend on Wall street now (the middle of October 2009) is up. So why would someone want to bet against it? More importantly, how do these people make money doing it. The answer requires constant monitoring and the ability to get in and out of the market quickly. I checked into this thing at the beginning of the summer and found that you need a “trading account” with one of the brokerages and that means having a healthy amount of money in your account. The reason, is that normally trades take a couple of days to settle, even though they happen in an instant. How is this possible? Well, until your trade is settled, the money you are using to cover that trade has to be in your account, if not, you are trading on credit and the brokerages will not lend you that credit unless you can cover your bets. If you are interested in finding out more about bucking the trend or “shorting the market”, here’s a pretty good article. Let me know what you think and please share this article.
Bucking The Trend
October 14th, 2009 — Money Strategies