Part V: Recession-smashing strategies

Chapter 19: Make the bear your friend

In this chapter, you will learn that:

• When the market becomes volatile, it is essential that you act on your stops, follow your trading plan, don’t guess at the next market leaders, and learn how to use strategies appropriate to the market conditions.

• Short selling allows you to profit from a downtrend. You can short sell using the services of a broker, or by using CFDs. CFDs are covered in chapter 21. Most traders use CFDs rather than short selling directly.

• You need to carefully define your set-ups and triggers into a short position before engaging the market. Also, ensure you understand the implications of dividends prior to short selling, as they can give ...

Get Trading Secrets: Killer trading strategies to beat the markets and finally achieve the success you deserve, 3rd Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.