Today’s markets are so volatile that many people are investing their money in stocks that will fall in value.
But they’re not the only ones who can make money on stocks that are going down.
Many investors have figured out how to make money off stocks that have already gone down.
Below are six ways you can make some extra cash today.1.
Invest in a stock that will be priced higher in the future, and then buy a stock to buy laterIf you’re looking to make some cash, it’s worth considering a stock you already own that has a higher price in the near future.
The next time you look at a stock, consider whether it’s a good investment or not.
For example, consider buying a stock with a market cap of $1 billion, a price tag that could increase significantly as the company expands.
If it goes up in value, you can then sell the stock and make a profit.
You can also buy a lower-priced stock and then sell it later.
For example, if the company’s earnings per share are expected to be lower than expected in the coming years, you could buy the stock at a lower price and sell it for a higher profit.2.
Invest by buying and holding your ownFor the most part, you should hold your own stocks.
You can’t profit off them.
If you can’t afford to buy a company, or if you just can’t bear the loss of that company, you’re better off holding a position in a mutual fund.
If you’re in a retirement account, you may have an opportunity to sell the stocks you’re holding, at which point you can earn an interest-free withdrawal.
You could also take advantage of low-cost index funds.3.
Sell a stock at its current priceThis is a risky way to make extra cash.
You don’t want to get into an account with a stock currently selling for $50, or you could be forced to sell at a higher future price.
If the stock falls to $50 in 10 years, for example, you might want to sell it now and sell at $80 in 10.5 years.
If a stock falls in value for $30 in 10 or 15 years, then you may want to hold onto it.
If stocks are trading at a loss for a short period of time, then selling them now may be your best bet.
You’ll earn interest-only withdrawals from the stocks, which you can use to buy stocks later.4.
Buy a stock where the price is trending higherYou might be tempted to buy the best stocks at a time when the price of the stock is rising.
For instance, you’ll want to buy an equity fund that tracks a stock’s price over time, rather than a mutual funds that track the stock’s market cap.
For more on how to do this, see our article How to buy and hold stocks that track stock prices.5.
Invest on marginWhen you sell a stock and take out a loan to buy it later, you don’t have to wait until the stock reaches a certain price.
You’re investing in a long-term investment, so you can get out of the risk when the stock goes down.
That way, you won’t be stuck with the higher-than-anticipated price for the stock.
This means you can profit off a stock before it’s gone.
For example:Suppose you buy a $1,000,000 stock at $100 and sell that stock at another $1.00.
You will earn interest on the money you’ve borrowed.
You still can’t sell the $1 million stock at that price because you’ve already paid it off.
You would earn interest only on the $100 loan.
You could also sell the two stocks together to earn interest.
For this, you would take out the $600 loan and then purchase a $2,000 loan, each loan paying off $2.00 of the loan.
When you make your interest-earning withdrawal from each loan, you will earn the interest-interest rates for both loans.6.
Make an extra profit from your retirement savingsYou don’t need to hold any stocks right now, but you might have some money left over to invest in the stock market later.
If so, you have two options: you can buy a low-priced index fund and sell a high-priced mutual fund, or both.
For each fund you buy, you earn a small percentage of the proceeds.
You make interest-less withdrawals from these funds.
For each loan you take out, you also earn interest income on the loan amount.
You can make an additional profit by holding a low or high-rated mutual fund for a long time.
The market could eventually drop to the level you expect it to drop, and you can sell the low-rated fund and earn interest payments on the remaining funds.
For more, see How to make a quick investment.