{"id":2411,"date":"2009-02-20T07:45:38","date_gmt":"2009-02-20T12:45:38","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=2411"},"modified":"2009-02-20T07:45:38","modified_gmt":"2009-02-20T12:45:38","slug":"3-ways-to-make-money-in-a-downturn","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2009\/02\/20\/3-ways-to-make-money-in-a-downturn\/","title":{"rendered":"3 Ways to Make Money in a Downturn"},"content":{"rendered":"<p>Here is some of the ideas that I discussed in a recent video series for MSN Money. Also, Friday is the last chance to download my book for FREE!<\/p>\n<p style=\"text-align: center;\">The link to the FREE download is <a href=\"http:\/\/articles.moneycentral.msn.com\/learn-how-to-invest\/3-Ways-To-Make-Money-In-A-Downturn.aspx\"><strong>HERE<\/strong><\/a><\/p>\n<p>I&#8217;ve always thought that investors can find a way to make money even in the worst imaginable market. For the past few months, we&#8217;ve been in just such a market &#8212; and I&#8217;ve done it.<\/p>\n<p><a href=\"javascript:void(changeArticle(0))\"><\/a><\/p>\n<p>So while many investors have been brainwashed into believing it&#8217;s possible to make money only when stocks move higher, don&#8217;t believe it. It&#8217;s not true.<\/p>\n<p>Over the past six months, I&#8217;ve turned a profit both in real life and with a model portfolio on MSN Money in the <a href=\"http:\/\/articles.moneycentral.msn.com\/Investing\/StrategyLab\/Rnd18\/StratLabSummary.aspx\">Strategy Lab stock-picking game<\/a>. During a brutal bear market, my Strategy <!--more-->Lab portfolio finished ahead by more than 14%, while the <strong>S&amp;P 500 Index<\/strong> ($INX) was down 35%.<\/p>\n<p><a href=\"javascript:void(changeArticle(1))\"><\/a><\/p>\n<p>The experience has helped me identify three ways to make money in any market:<\/p>\n<ul style=\"margin-top: 0px; margin-bottom: 0px;\" type=\"disc\">\n<li style=\"padding-right: 0in; margin-top: 0in; padding-left: 0in; font-size: 10pt; margin-bottom: 0pt;\">Be disciplined. Set a price to buy and a price to sell whenever you make a move, and stick to them. Don&#8217;t get attached to any stock. Don&#8217;t waver.<\/li>\n<\/ul>\n<ul style=\"margin-top: 0px; margin-bottom: 0px;\" type=\"disc\">\n<li style=\"padding-right: 0in; margin-top: 0in; padding-left: 0in; font-size: 10pt; margin-bottom: 0pt;\">Be nimble. Lazy portfolios do not make it in a market like this. Everyday investors are often told not to trade and particularly not to sell short. In a tough market, you have to move fast.<\/li>\n<\/ul>\n<ul style=\"margin-top: 0px; margin-bottom: 0px;\" type=\"disc\">\n<li style=\"padding-right: 0in; margin-top: 0in; padding-left: 0in; font-size: 10pt; margin-bottom: 0pt;\">Be flexible. I refused to abide by a single strategy over the past few months and realized that opportunities lie in unusual places in a market like this. I <a href=\"http:\/\/articles.moneycentral.msn.com\/Investing\/StrategyLab\/Rnd18\/P4\/DisciplinedInvestor20080814.aspx\">shorted municipal bonds<\/a> and <a href=\"http:\/\/articles.moneycentral.msn.com\/Investing\/StrategyLab\/Rnd18\/P4\/DisciplinedInvestorJournal20080918.aspx\">bought preferred stocks<\/a>.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/articles.moneycentral.msn.com\/learn-how-to-invest\/3-Ways-To-Make-Money-In-A-Downturn.aspx\">MORE&#8230;&#8230;<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is some of the ideas that I discussed in a recent video series for MSN Money. Also, Friday is the last chance to download my book for FREE! The link to the FREE download is HERE I&#8217;ve always thought that investors can find a way to make money even in the worst imaginable market. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,28,253],"tags":[249,483,490,244],"class_list":["post-2411","post","type-post","status-publish","format-standard","hentry","category-markets","category-media","category-strategy","tag-hedging","tag-markets","tag-stocks","tag-strategy-lab","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/2411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=2411"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/2411\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=2411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=2411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=2411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}