This one probably belongs in the Stock Market 101 category.  However, many visitors to our sites have asked about it, prompting us to come to the realization that not every stock investor is actually “in the know”.

Most of us think of a stock market crash as a sudden drop in stock prices (or in an index of stocks such as the Dow Jone s Industrials) across the board.  If you were invested in these stocks, then you show a loss in your investment, however the loss isn’t realized unless you sell your positions.

So how do some investors make money when the stock market drops?

The difference is trading stocks vs. investing in stocks.  The magic is in something called a short sale.  Don’t confuse this with what real estate investors are now calling a short sale.  In stock trading, the short sale simply means you are selling stocks in advance that you don’t actually own.  You make your money when the stock price drops and you are able to “buy back” the stock at the lower price — you keep the differene as your profit.  It’s the best thing for certain markets, like haveing a time machine that lets you trade backwards.  The fat-cat traders are the ones that do this the right way and make a killing when the market sells off.

Want to know how to sell short the right way, as well as learn 4 secret strategies of a stock market insider?

Then go to this webpage and sign up now for the live, on-line presentation:
Market Mastery Free Live Training