Past Few Days on Stock Market

Today many European countries put a ban on short selling. This included France, Italy, Spain etc… . Short selling is a perfect healthy way of trading for stock traders. This goes to show you how clueless these politicians are and the extend they go to put band aids on this failing global economy. After the week crash that ended in Aug 6 2011, the stocks have had 1/3 of the volume of before. What does this tell you?

Bans Imposed on Some European Short Selling

The only solution is for most of Europe and USA to go to a recession and a long period of austerity and come up stronger and let the economy fix itself naturally than throwing stimulus and money at bad debts. Canada had to do this in the 1990 and it came out strong.

What this means for the people who are learning to trade on stock market? Well this is a perfect opportunity to make money on the volatility (we recommend having more put and short selling than longs and call options). You can easily see how a simple news can be bad for certain economies or single companies or even for the whole world in one shot (where everything goes up and down in a few minutes).

Relax, take caution, diversify and make money by shorting stocks that have gone up way too high and long the ones you think are beaten down very bad but have good potential.