Sp 500 Day Trading

Written by Erin Jones
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Contrary to popular belief, there is a lot of opportunity to make money when the stock market is going down in value. Many investors fret when the stock market begins to decline because their investments consequently decrease in value. If you actively manage your investments, however, you can make money in up, down, and sideways trading market environments.

Knowing How to Make Money in Up and Down Markets

In addition to the Dow Jones, the S&P 500 is one of the most well-known trading indexes. The S&P 500 stands for the Standard and Poor's Index and includes 500 large value and large growth stocks. Mutual fund managers will typically compare their returns to the return of the S&P 500 in any given year to track their performances to the index.

If you've been investing for a while, you've probably heard of shorting stocks. Shorting a stock means that you're essentially betting that the price of the stock will decrease. If you're bearish on the market as a whole, you can short the S&P 500 index and actually make money while the rest of the market is going down in value.

Shorting I-shares or E-minis on the S&P 500 is very easy to do and is accessible to investors of all experience and net worth levels. When you short a security, however, you must closely monitor your investment. You can actually end up owing money if you're wrong, so you may consider consulting with a professional first. Investors who shorted the index in the most recent bear market made great returns, proving that you really can make money in any type of market.


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