- The first thing we should consider when we look to diversify is if the asset we are investing in is correlated or not to other assets we have already invested in. For example, if you already own shares in a gold mining company, then buying more shares in another gold mining company is not going to give you the diversification benefit you need.
- Another way to diversify away from stocks is to use the options market for hedging and as a form of financial “insurance policy.” Options can be traded in ways that give you large pay-outs if something dramatic happens in the market, while you only have to pay a small fee if nothing happens.
- Learn to trade forex. In the forex market, it’s as easy to profit when the market is going down as it is when the market is going up. That means that there are always opportunities to make money, even when the stock market is a horrible place to be for other investors.
- Learning to short stocks is another strategy that can save you during downturns in the stock market. When you short a stock, you are essentially betting that the stock will go down in price, and you will profit accordingly if you are right. This way, you can easily counter any losses elsewhere in the stock market!
- Invest in precious metals like gold and silver. These are so-called “safe-haven” assets that tend to rise in price when the rest of the market declines. As such, it is also a great form of financial “security policy” with very little potential downside risk. In particular gold is one of the most stable financial assets that exists, which means that it can provide you the security and stability you need in an uncertain world.
Learn shorter-term trading strategies that can help you make money in any market environment across assets such as stocks, forex, and even crypto currencies. With some of these strategies, professionals who have learned to master them are able to produce consistent profits no matter what the overall direction of the market or the economy is.
In some ways, short-term trading is the ultimate skill to learn for anyone interested in achieving financial independence for themselves and their families.
We hope these strategies were interesting for you and that you will be able to take advantage of some of them to achieve your investment goals. If you do, we would be happy to hear from you what worked and what didn’t so that we better can help more normal people like yourself in the future!