Spread Betting in a Bear Market
With financial-spread betting, you can take a Wealth Activator Code Review position on a range of instruments including indices, shares, commodities and forex, irrespective of the direction in which the markets are moving.
In financial trading, October 19th 1987 will be forever remembered as Black Monday - the day that stock markets around the world crashed and the Dow Jones fell by nearly 23% in just 24 hours.
Though drastic when viewed in isolation, the loss in investment value was experienced most acutely by traders who closed out their positions and bailed out of the market completely on the day of the stock market crash. In fact, the markets did begin to climb back from that low point and the Dow Jones actually entered positive territory, rising by 0.26% before the year was out.
One important aspect of surviving a bear market is preparation. Around the time of Black Monday, traders who employed technical analysis and charting knew that bear markets tended to occur every few years, and consequently chose to keep their spreads open. This would prove to be the right decision. Ultimately, if a trader opened a spread bet on the first trading day of the year, January 2, and was able to keep it open throughout Black Monday all the way to December 31, it is possible that they would not have lost a penny.