Simply put, yes you can. The trick to actually getting it done is that you need some information so that you actually know exactly how to go about it.
It has often been said that the stock market behaves erratically in the short term. With that in mind, you will certainly understand that getting the basics down pat is important for successful trading on the market. The news have certainly not been rosy in recent times, but I like to say that one man’s pain is another man’s gain.
Just like every other market, there are “sales” in the stock market, and those sales are known as bear markets. Because of different reasons, people want to sell their investments, and that creates a pressure on stock prices, which go down. This is where the opportunities present themselves.
Naturally, stock prices that are going down are not good news for people who are heavily invested in the falling securities, but it’s an opportunity for those that are not, provided that the company’s fundamentals are solid. A little “out of the box thinking” can yield sizable profits.
Looking past the financial sector, there are plenty of other sectors where company stocks have been battered because of the current crisis but whose business fundamentals are as solid as ever. This is where your research comes into play so you can determine which ones are worth buying.
Back to our previous point about understanding the basics, you will need to look at those companies’ financials to determine whether or not the current fall in stock price is caused by the company not doing very well or just caused by widespread pessimism about the economy.
The companies that you find to be performing near their traditional levels in terms of financial performance are the good “buys”. While everyone is selling them, you can certainly make money picking them up, setting yourself up for great gains when the economy turns around.
