Investing in the stock market to the downside, and why not?

Every time financial markets experience declines in their indices, investors they lose a lot of euros in their stock market operations, too many in the case of greater bearish virulence. What's more, nervousness takes over their state of mind, until these bearish movements produce real headaches. Perhaps what some of them do not know is that they can also take advantage of the most negative situations, even under higher profit margins.

The markets have enabled some investment strategies, and even very innovative financial products, which do not miss this trend that bearish movements provide them. To take positions in them, you only have to know how to operate in markets with these characteristics. And where experience and learning will play a decisive role to make your savings profitable, without worrying about losses.

The great advantage of this peculiar system for investment resides in that it can not only be accessed through the purchase and sale of shares in the main equity markets. Of course not, but there are other alternatives to satisfy the demands of investors with more experience. And that requires a whole series of instruments to take advantage of trends dictated by markets.

Buy low, how?

To benefit from the downtrend in the markets, several financial products have been enabled that fulfill this function. Basically through lifelong stock trading. But this time much more innovative and daring models have been added to streamline these processes, including with the possibility of increasing capital gains every time you go to them.

If your prospects for this new year are to undertake this type of operation, there is no doubt that you will have the necessary elements to carry them out. The most common way is by operating directly on the stock markets, on a share, sector or equity index.

The most satisfactory option is credit sale operations. They allow you to generate large profits from the sale of securities borrowed. However, it is a very delicate product, since if you do not know how to operate in them correctly they can lead to many losses, even more than you can bear.

Likewise, this movement can be strengthened against your interests, if the evolution of the shares (or other financial assets) do not develop as you initially expected, and instead of going down, they show the opposite movement, that is, they go up. In all probability that your invested assets will depreciate significantly, more than you might think, since their movements are very abrupt.

Through other financial products

Despite everything, you don't have to limit yourself to this risky product. There are others that are made more effectively, and why not, with some protection in the operations that you are going to develop in the coming months.

One of them is investment funds., which are increasingly proposed by managers so that you can hire them through your bank. They are mainly based on the main international stock indices, but also on sectors and a basket of shares. So that, as a consequence of its application, you have the necessary instruments to trade down.

The main problem that this management model entails is that its effectiveness is in the medium and long term. And of course, bearish movements are generally limited in duration and need an immediate and urgent response from small investors. And precisely these funds do not give it, but require longer permanence. If you are not in a position to face it, it would be better to opt for other more agile designs.

From this perspective, the more satisfactory it will be for your interests, if you direct the accumulated savings to a reverse ETF with these same characteristics. ETFs, or exchange-traded funds, are an intermediate product between traditional mutual funds and stocks., and that serve to maintain this strategy with great practicality. Not surprisingly, they more accurately replicate the bearish movements of the markets. And perhaps, they will be more adapted to your true needs to make profitable these figures that all bags present.

In a fourth step, and under a greater risk in operations, put warrants are present. A really more sophisticated product that makes these movements more profitable, and you can get a better return from them if you know how to operate with them, although with greater disadvantages if the forecasts are not met. In addition, they serve to formalize short-term operations, and more expeditiously. But in any case, you should be more used to moving in them, with a certain learning about them.

How should you trade in this trend?

If you are convinced that some stocks or indices are going to fall in the coming months, do not hesitate, use these financial products. It is the only way to make your savings profitable, through the proposals presented by the financial markets. But as long as you adopt behavioral guidelines, which not only help you to correctly develop this strategy, but are also open to provide greater protection to your financial contributions.

All this in an economic scenario with great uncertainty for this year, and that unlike other years has not had a good start. The doubts about the economic recovery, the Chinese slowdown and the tensions in the Middle East are some of the channels of this hopeless start for the main financial markets.

It will be a year, in any case, very volatile, in which the oscillations in the prices of the actions will be very notable. So what Through fast and flexible processes you will be able to generate more capital gains than initially contemplated for an exercise as complicated as the one presented.

At least, you will have the possibility to subscribe with a series of products to earn money this year, and not be unemployed in these coming months, if the evolution of the stock markets is not the same as what many financial analysts predict. And that even from Bankinter they give an upward journey to the stock market of 30%.

However, if for any reason, you decide to opt for some of the products previously suggested, you will have no choice but to import. a series of tips that will be very useful to develop investments in this new year.

Decalogue to invest with these products

Of course, you have before you, more than one product that captures the downward movements of the financial markets. But with the same strategies when operating with them. Hence, the tips are common to all of them, with practically no exclusions. Through ten simple, but at the same time effective keys that you must assume from now on. Not surprisingly, it is your money that is at stake, and improvisations on these approaches are worth it.

1. They are products with a lot of risk, excessive in some cases, that you should only use them when the markets have a very well-defined trend to carry out operations
2. You should lean towards one or another financial product, depending on the experience you have in each of them, and also, on the profile you present as an investor. To definitely lean towards the most convenient one based on these variables.
3. You should not allocate all your assets for this kind of operations, but on the contrary, must be very limited, with no more than 30% of the capital available at those moments. Well being able to diversify it with other less dangerous financial assets.
4. If you do not know in depth how to operate with these financial products, you better give up your attempt, because you can probably develop losses that will be very difficult to face. Due to the high volatility that they present as a whole.
5. It is preferable that you initially focus on global indices, and not on a share of a specific listed company. Not in vain, through this simple management strategy you will significantly reduce the risks of the operation.
6. They are not products to operate regularly with them, but quite the contrary, they are intended for very specific operations, and that they are not lavished in excess throughout the year. In any case, They must be limited and controlled to avoid any capital flight through them..
7. It will be more sensible opt for designs that charge less for their commissions. Its effects are practically the same, but instead you can save a lot of euros in expenses. You can even take advantage of many of the offers and promotions that banks have been making to subscribe some products: funds, ETFs, warrants ...
8. They are especially suitable when equity markets develop highly consistent bearish movements, or at times when recession scenarios occur in the world economy. Without having to wait for the bullish scenarios to return to the charts again.
9. Certainly, some of them will be difficult for you to operate, being convenient that you get used to them through virtual simulations, where you will not put your savings at risk. And instead, you will quickly learn to navigate these peculiar products for their actual recruitment.
10. If you have any doubts that you have, finally, You can turn to the advice of your bank. It will help you properly channel your investments, through a team of professionals with extensive experience in financial markets. Without involving any financial outlay, since it is a service for customers.