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How to Profit When Other Investors Lose Their Shirts

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http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts

How to Profit When Other Investors Lose Their Shirts

Whoa! What happened to Facebook? The stock lost just over twenty percent of its value in four days between July 25 and July 30. If you invested in the stock a few months after the IPO in 2012 you bought Facebook for $18 a share. And, if you had sold at the peak on July 25th, you would have gotten $217.50 a share for an eleven-fold, 1,100% profit. We all wish we had the foresight to spot every Facebook opportunity in order to buy and sell at the right times. But, successful investors live in the “now” and not in the past. A lot of people lost a lot of money when Facebook’s market cap fell by more than $100 billion. But, not everyone lost money in the last few days with Facebook. We would like to consider how to profit when other investors lose their shirts, when stocks like Facebook correct or crash.

How to Profit When Other Investors Lose Their Shirts

Take timely profits
Be a contrarian
Options trading

How to Profit When Other Investors Lose Their Shirts: Take timely profits

An old but still-useful investment strategy is to take a profit when you make a profit. As the Facebook experience shows, just because the stock price when up, you did not make money. You only make money when you sell. Because, any investment can always fall in value. The problem with this approach is that you miss out on more profits if the investment continues its upward climb.

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How to Profit When Other Investors Lose Their Shirts

  1. 1. How to Profit When Other Investors Lose Their Shirts By www.ProfitableInvestingTips.com
  2. 2. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Whoa! What happened to Facebook? The stock lost just over twenty percent of its value in four days between July 25 and July 30.
  3. 3. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts If you invested in the stock a few months after the IPO in 2012 you bought Facebook for $18 a share.
  4. 4. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts And, if you had sold at the peak on July 25th, you would have gotten $217.50 a share for an eleven-fold, 1,100% profit.
  5. 5. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts We all wish we had the foresight to spot every Facebook opportunity in order to buy and sell at the right times.
  6. 6. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts But, successful investors live in the “now” and not in the past.
  7. 7. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts A lot of people lost a lot of money when Facebook’s market cap fell by more than $100 billion.
  8. 8. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts But, not everyone lost money in the last few days with Facebook.
  9. 9. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts We would like to consider how to profit when other investors lose their shirts, when stocks like Facebook correct or crash.
  10. 10. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts How to Profit When Other Investors Lose Their Shirts
  11. 11. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts • Take timely profits • Be a contrarian • Options trading
  12. 12. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts How to Profit When Other Investors Lose Their Shirts: Take timely profits
  13. 13. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts An old but still-useful investment strategy is to take a profit when you make a profit.
  14. 14. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts As the Facebook experience shows, just because the stock price when up, you did not make money.
  15. 15. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts You only make money when you sell. Because, any investment can always fall in value.
  16. 16. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts The problem with this approach is that you miss out on more profits if the investment continues its upward climb.
  17. 17. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts How to Profit When Other Investors Lose Their Shirts: Be a contrarian
  18. 18. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Warren Buffett famously said that investors should be fearful when everyone else is greedy and greedy when everyone else is fearful.
  19. 19. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts If you combine this contrarian approach with sound analysis of intrinsic stock value, you greatly improve your odds of making a profit when other investors lose their shirts.
  20. 20. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts How to Profit When Other Investors Lose Their Shirts: Stock options
  21. 21. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts We have written about how to use options to protect your investment portfolio and how to make money selling options.
  22. 22. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Another approach is to use options to make money whether a stock goes up or down.
  23. 23. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Wisely placed options trades take advantage of the leverage that options offer and limit any potential losses to the price of an option contract.
  24. 24. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts We are currently featuring such an approach by the Weekly Money Multiplier in an upcoming webinar.
  25. 25. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Attend the webinar and learn how to profit when other investors lose their shirts.
  26. 26. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts The Horse Is Not Out of the Barn
  27. 27. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts CNBC writes that the horse is out of the barn with Facebook and other tech darlings.
  28. 28. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Fears of a widespread tech wreck have been greatly exaggerated, says BTIG’s chief equity and derivatives strategist Julian Emanuel.
  29. 29. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Even as Facebook, Twitter, Netflix and Intel were taken to the cleaners after recent earnings reports, Emanuel says one area of the market suggests the selling has reached its peak.
  30. 30. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Perhaps Facebook is done falling and maybe it will come back.
  31. 31. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts Or, maybe it will keep falling. For options traders, how to profit when other investors lose their shirts is to be alert for opportunities and learn to limit losses and magnify profits with well-placed trades.
  32. 32. http://profitableinvestingtips.com/options-trading/how-to-profit-when-other-investors-lose-their-shirts If you want to learn how, sign up and attend the webinar.

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