2016 is fast approaching, and you may already be thinking about how you can improve your financial situation in the coming year.
Have you been dealing with debts that you need to get rid of? Are you looking for a way to put your money to work for you with minimal effort on your part so that you can continue working but you can supplement your income easily? Then consider profiting from the markets in 2016. Continue reading to gather a few tips on how to go about doing so.
Try Spread Betting
The best way to make money from the markets in 2016 is through spread betting. With sites like Reviews.SpreadBetting and others available, you can gain access to valuable and helpful information on everything from what spread betting is, to what the best spread betting brokers in the industry currently are.
Basically, spread betting goes beyond simply investing in stocks. Instead, you can invest in entire markets, commodities, and much more. There are various options to choose from, so you can invest in the particular markets that feel right to you and can give you the highest return on your money.
The best thing about spread betting is the fact that it is totally tax-free. This means that you can keep all of the profits that you earn, without having to be subjected to the taxes that you would otherwise have to pay if you were investing in the traditional stock market.
Know How to Profit in a Bear Market
A bear market is one that has a 20 per cent or greater drop, from the closing low to the closing high, in market average over the course of one year. The bear market is typical during economic depressions and recessions. Pessimism tends to prevail in the bull market, so you really need to know what opportunities are available to make the most money possible. To make money during a bear market, focus on short selling, also known as taking short positions. And also take advantage of put options to sell stocks at specific strike prices until an expiration date.
Know How to Profit in a Bull Market
In order to do well in a bull market, which is defined as one that showcases security prices that are rising quicker than the overall average rate, you should use long positions. This means buying a security or stock with the anticipation that its price will rise. After all, a bull market is about optimism and economic growth. Remember to buy low and sell high. You can also use call options, which give you the right to purchase stocks at specific prices until specified dates.
Now that you know a few of the key ways that you can invest in the markets and make money in them, whether you are dealing with a bull or bear market, and whether you are trading shares of stocks or spread betting instead, you can really put your money to work for you in 2016.