Make money online trading stocks in the news.
Baidu on Google news in China.
How to make money out of the news about Google getting out of the Chinese market?
Article posted by Bruce Bucks on Jan 15th, 2010.
If you've been following the news this week, you are well aware that Google is theatening to close its opeartions in China.
Stock traders have anticipated this move by stocking up on shares of the Baidu, the competing search engine.
Just check the chart of
BIDU and see the peak in the share value of Baidu this week.
The question is: Is Google really going to shut its opeartions on the most promising market in the world?
Is Google really going to let go millions of advertising revenue as well as millions of potential sales of its new smart phone in the name of freedom of speech?
My bet is they won't.
My feeling is the Chinese government is going to pretend to follow better practices. Google is going to pretend that it obtained what it wanted from government officials, and everyone is going to get back to work as usual.
Of course, no one can tell what's going to happen in the next few weeks. It is only a possibility that Baidu stock gets back to its normal trading level.
If so, how can you actually make money online with Baidu stock going down?
As far as I know,
there are two ways to make money out of a stock going down:
#1: Short the stock.
This is NOT recommended as the risk is unlimited.
#2: Use a put option.
Many will shout and scream that options are exotic products they don't understand.
Many will say trading options is risky (probably because they don't understand how to select the right option and how to manage a derivative position.
Don't be one of those guys, instead, learn more about options.
Go to optionsXpress.com and
learn more about options trading. Using put options to make money on a stock going down is better than short the stock.
Buying a put option means you have a limited risk which is great. That means that you can be wrong without losing much. It also means that your return on investment is leveraged.
Related information on this website:
Portfolio Income
Related search:
Stock Options Trading: Make money on a stock going down. Baidu on Google news in China.
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