Panic Selloff in a Stock? Here's How to Make Money

When markets go into panic mode, market makers cannot be expected to be constantly making accurate, reliable markets. Thus, the bids and offers you might see on your trading screen at such time should not be considered as firm, or "real."

The problem created by panic selloffs is that even with today's sophisticated computerized market, when panic sets in human chaos joins the fray. Chaos being in control of the bid and ask in options is more erratic and unreliable at, and during, these times. Those bids and offers we see should be thought of as mere suggestions. And, while this panicked period is ephemeral, it is during such times that the excellent money can be locked in!...396 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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