The market is going down? Here is how to make money

Shorting

Shorting is when you know that a stock will go down, you borrow the stock from the broker, and then sell it in the market. Later, when the stock falls in price, you can buy it from the market and give it back to the broker. This way, you get to keep the difference from when you borrowed the stock from the broker and when you bought it back.

The reason it is so easy and has a high success rate, is because you can always be sure if a stock will go down but you can't be sure if they would go up. This is because pessimism and negative news travels faster than positive news.

It is necessary to the rules of your broker prior to shorting. Some companies can't be shorted.

Inverse ETFs

When SNP500 and the normal etf increase, then the inverse etf will go down and vice versa

You can use an inverse leverage etf, it moves 3 x as much as the normal inverse etf.

This is particularly useful in situations when whole industries or national economies themselves are in recession.

Put Options

A put option is when an owner has the right to sell a particular quantity of stock within a specified date. As the stock falls, the value of a put option increases. However, you should be absolutely sure that the company you pick will fall, otherwise you may suffer huge losses.

Keep investing.