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Solid Gains From Shorting

To tell you the truth, unlike some investors, I have no qualms about suggesting that my subscribers short stocks in order to make a profit--especially when the market behaves badly. And let's face it: Today's market isn't exactly the picture of perfection (to say the least).

This is especially true when stocks continue to act like they want to go down hard this week, validating our skeptical posture toward corporate earnings trends. With trading volume low and financial shares dropping into a hole, you can almost sense institutional investors walking away from major companies. For me, though, this is a very exciting environment to be in. Negative scenarios amongst major companies provide plenty of opportunities for growth within my subscribers' Trader's Advantage portfolios. That's why almost every week I'm offering them yet another new, exciting company in which they can short a stock and make out like a bandit in a very short amount of time.

If you're looking for proof on the benefits of shorting stocks, then let me tell you about one of my favorite examples of how to benefit from a falling sector. Just this past Wednesday, I updated my subscribers on the fact that my short recommendation, Aircastle (AYR) an aircraft lessor, stopped out. With this stop, my Trader's Advantage subscribers were left with a 17.6% profit. This nice profit was pocketed away in just a week. If you think that's incredible, then you won't even believe this next nugget of information: This was the second time in a row that I suggested my subscribers short AYR. I just couldn't help but immediately recommend it again under a new stop and target after it brought my subscribers in a very nice 11% profit the first time around. This just goes to show that if you set emotions aside (which is always a wise choice when investing), then you can truly learn to profit from the market's current falling sectors. Sure, the optimists may consider this taking pleasure from others' pain, but to me and several other savvy investors, it's a fact of life. Business is business, and often that's what practicing smart investing comes down to.

Sure, there's always a time, stock and/or sector to buy in. Don't get me wrong, I'm not against holding on to a stock for the long haul with the faith that it'll go up, but I do realize that this is not always the right direction to head in while investing if you want to walk away with on overall profit. And who doesn't love profit?

While facing a volatile market, which has become the norm these days, do more than just optimistically buy stocks, instead exercise your option to short. In my opinion, it's your ticket to avoiding unnecessary risks.