I know it might sound funny at first, but your bank account can be affected from halfway around the world. Everything can be perfectly fine right here at home, but that doesn’t mean your money is safe.
The truth of the matter is that vigilance is vital if you’re going to put yourself in the best position to build up wealth.
Let me explain exactly what I mean and show you how to keep your cash…
Two days ago, Turkey shot down a Russian jet that was reportedly flying in and out of Turkish airspace. Although there’s still some uncertainty about the specifics, the Russian jet was said to be warned several times before action was taken by Turkey.
The immediate economic impact of the situation was a rapid decline in Russian and Turkish stocks.
But the reach of those events didn’t stop there…
Yesterday, stocks opened starkly down on global instability. That’s right – an event that took place on basically the other side of the world caused the markets in the U.S. to dip.
To make it more personal to you, the vast majority of people have money tied up in the stock market one way or another. If you’re not directly invested in stocks, it’s likely that you have cash in a retirement/mutual fund, which is spread out through the stock market.
And that’s how watching the news could save you thousands. But really there are 3 steps to follow…
1. Watch the news and search for big events.
2. Decipher what events may have an impact on YOUR money.
3. Take action to protect your cash and possibly even make more.
Step number 3 is where rubber hits the road. Taking action could mean anything from pulling your money out of the market to adding a stop loss that means you’ll close any position that falls to a certain level.
But an action that could make you money even when global events cause the market to fall is short selling.
If you’re relatively certain that a bit of news, like a Russian jet being shot down by Turkey, will send Wall Street downward, a proper short sale could net you a quick payday.
Because a short sale is a bet for a security to go down, any decrease in share price means you’re making money. That means you could be winning while everyone else is losing…