Credit Crunch

Credit Crunch Investing

With all these banks folding or having to get bailed out by government due to their diving share prices, investors must be losing money right? Wrong! 

Clever investors know not to trade when their is no news and little market movement thats when they lose money, over the past week the markets have been going up and down like my ex wife’s knickers, Millions and Millions of £’s have been made by people that know what their doing.

How have these investors made money from the Credit Cunch?

By selling, the traditional stock market trader is a Bull,  they buy and hold. In these days of the credit crunch different trading styles are required, day trading involves following the markets and fundamentals for a very short period of time reducing your exposure and risk.

As more people start selling, more of the traditional investors start pulling out and so the price tumbles further and faster making the Bears (people that are selling) richer and richer. Yesterday shares in HBOS Where down 40% at one point, anyone with a Million spare and superhuman timing  could have made 400k not bad for a days work.

Is it this profitering Gordan Brown has today mentioned on UK TV?

He said. “I think we’ve got to look at where there has been irresponsible behaviour and I’ve said for some time that we need reforms in the system.”

“I believe there is now an audience that agrees with me that we should do more. We’ve got to clean up the financial system. We don’t want these problems recurring in the future.”