How to Profit When Other Investors Lose Their Shirts

How to Profit When
Other Investors Lose
Their Shirts
By www.ProfitableInvestingTips.com

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.

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

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.

Investors Lose Their Shirts: Be
a contrarian

Warren Buffett famously said that investors
should be fearful when everyone else is
greedy and greedy when everyone else is
fearful.

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.

Investors Lose Their Shirts:
Stock options

We have written about how to use options
to protect your investment portfolio and
how to make money selling options.

Another approach is to use options to make
money whether a stock goes up or down.

Wisely placed options trades take
advantage of the leverage that options offer
and limit any potential losses to the price of
an option contract.

We are currently featuring such an
approach by the Weekly Money
Multiplier in an upcoming webinar.

Attend the webinar and learn how to profit
when other investors lose their shirts.

The Horse Is Not Out of the Barn

CNBC writes that the horse is out of the
barn with Facebook and other tech
darlings.

Fears of a widespread tech wreck have been
greatly exaggerated, says BTIG’s chief
equity and derivatives strategist Julian
Emanuel.

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.

Perhaps Facebook is done falling and maybe
it will come back.

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.

If you want to learn how, sign up and
attend the webinar.

How to Profit When Other Investors Lose Their Shirts

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How to Profit When Other Investors Lose Their Shirts