I’m sure you’ve seen some scary stock market headlines recently…
“Dow crashes on the back of new variant”
“Supply chain slowdown wreaks havoc on stocks”
“A bear market looms”
But I’m here to inform you that they’re nothing to be afraid of…
In fact, you can make just as much money (if not more) from the market downs as you can from the ups.
We can both agree that the stock market does not and should not go up in a straight line.
It probably wouldn’t exist for many reasons if that was the case.
And there’d also be so many people getting in on it that there wouldn’t be any room left for people like you and I to make money from it.
Though it may feel like the stock market was going up in a straight line after the March 2020 Covid crash, it’s had its pitfalls – a significant one recently, too.
In fact, the past 4 weeks have seen the Nasdaq end up red (down from the week prior).
That’s the type of movement that spurs these eccentric headlines I’m talking about.
But there’s a way to make a LOT of money on the way down.
It just takes some confidence and a little bit of cash.
You see, there are trading vehicles that exist called Exchange Traded Funds (ETFs) that work in various ways.
Some of them track the market action so you can buy the Nasdaq and the S&P 500 as easily as you’d buy Facebook or Google shares.
These ETFs basically track the market movement so you’re getting the same return you’d get if you invested in all the stocks that exist in those indices.
But even better, there are ETFs that track the indices in an inverse fashion.
For example, if an ETF that tracks the S&P 500 goes down 3%, the inverse ETF goes UP 3%.
I like to look at it like you’re making money while everybody else is losing.
It’s kind of like short selling, but 1,000x easier.
Like I said, it’s just like buying the stock.
But I want to take this plan 1 step further.
What if instead of the inverse going up 3%, it went up 9%?
I’m talking about the index going down 3%, and the inverse ETF going up 9%.
Those are called leveraged ETFs.
There are plenty of them out there for you to trade, but my favorite one is the ProShares UltraPro Short QQQ Nasdaq (SQQQ).
It’s a 3x leveraged inverse ETF of the Nasdaq.
The Nasdaq is usually the most volatile of the major indices because it tracks tech stocks.
A lot of tech stocks shoot up like crazy on good news, but they’re the first to fall on the slightest inkling of bad news.
So the Nasdaq whips around quite a bit.
Which is great…
When you start seeing the “terrifying” headlines about markets going down, corrections, and crashes, simply buy some SQQQ until all the chaos has surpassed.
In the end, you’ll be sitting on a nice chunk of profit while everybody else is losing their hair over the market.