A good stock market investor makes more money when market crashes
By scheng1
@scheng1 (24650)
Singapore
November 27, 2015 9:17am CST
A good stock market investor likes a market crash more than a market boom.
At this point in time, many stocks in the stock market are trading at a very high price.
You have to go through all the stocks to find one or two that are still undervalued.
The stock markets worldwide have not reached the kind of frenzy buying to bring about a stock market crash yet.
A good stock market investor knows about shorting the market to make a lot of money.
What does that mean?
If you buy a stock at 20 cents, and 5 years later, it reaches a dollar, and you sell it off, you make a good profit. Your profit is 80 cents. However, that takes five years.
If you short the stock at a dollar when the market is crazy, and the stock goes down to 20 cents in a stock market crash, you can make a profit of 80 cents. This takes a few months.
It takes five or six long years for the share price to go up, and just a couple of months to fall down to original level.
That is why a good stock market investor prefers a market crash. He can short the market and earns the same amount of money in just a few months.
4 people like this
3 responses
@whiteream (8567)
• United States
27 Nov 15
I really don't know that much about the stock market but when I took an accounting course I founds this out.
1 person likes this
@amadeo (111948)
• United States
27 Nov 15
Thank you for being helpful on this.I will be meeting mine soon to see what to keep and dump