the stock market is crashing the overall market is going down
how can you profit off the market crashing what tools can you use to make
profit I'll show you in this video talking about how I made six hundred
eighty four dollars today trading you vxy as the overall market was turning
red and selling off so you can see here I have two charts bata I have the UV X Y
and I have the spy photo the UV X Y is a two x ETF that tracks the VIX so the VIX
is obviously going to be volatility it's an attractive volatility in the market
I'm not going to get too deep into it but give you an idea the VIX basically
follows the overall market when the market sells off the volatility Rises
when the market goes sideways the volatility goes down and you get an idea
of how volatility works but you can actually trade volatility and you can
find different ways to short the overall market using the VIX overall and you vxy
is a great one for that there's also T VIX there's all kinds of
different ways that you can trade volatility you can trade in short the
overall market but I chose to use UV X Y for a couple different reasons and I'll
talk about those in this video so the spy is an overall ETF that's
going to combine all the top 500 SP is going to basically track the overall
sp500 performance so using two ETS here got it the UV XY ETF and have the spy
ETF and you get an idea here you can obviously see that the UV XY is tracking
the volatility as it's going up as the spy is crashing which is the sp500 so
breaking this down real quickly you can see here in the morning
the market opens up here pre market is at 244 and it's like okay not a big deal
it starts to crash a little crash and it's like okay it's bouncing they are
243 that's pretty normal you know we're getting nice little balance there got
some support there a 243 area all of a sudden the market turns red starts to
turn red starts to sell off the overall markets were selling off today tech was
selling off big and you can see the sp500 followed right after that and as
you can see here it crashes down and looking at the chart here you can see on
the you know this is overall this is a 5-minute chart this is a daily chart you
can see the overall markets the last couple months how they've been trading
obviously been at a nice high they're at 2:45 air 2:45 has been big resistance
can't get through that 245 area recently so that's all-time high there 245 area
and having some trouble kind of bounce around in that channel
- 45 - 41 area kind of bouncing and we actually broke through that to 41 air is
the lowest SP has been all month of June so once it broke through that to 41 I'll
think this might really want to crash it my kid bloody might have a big sell-off
might really have some opportunity here to benefit so once I saw that 241
bouncing I was keeping a close eye on 241 okay 241 breaks this is going to be
game on looking for that move down here 240 it's 240 breaks this is really
really going to crash going to get nasty quick and we can see a really big
sell-off in the market today to go along on the VIX here at that break of 241
looking for that move down here to 40 and I ended up getting in you can see
basically looking at the chart you know this is the VIX is basically an inverse
of what's going on in the spy so if the spy cells on really really hard the the
VIX is really going to ramp up and go high really fast and you can see kind of
how this is mirrored here so right in this area we start to get that sell-off
we get to that 241 area and I start looking at it I'm like okay we get above
this 1050 area we start crashing down right here you can see here we break
through 241 starts to bounce around a little bit and then we really get this
big sell-off right here and I ended up going long over the 1050 area and got
this move above the eleven dollar area up here to 11:10 ended up getting about
60 cents there on a thousand shares so I ended up making about six hundred eighty
four dollars actually trading on my phone that's easier sometimes as you
sink or swim right on my phone as I was doing so everything's editing and
trading in the smaller account on the dash trader Pro I just pulled it up
really quickly on my phone just to trade this in my larger account just to get a
thousand shares quickly I think I'm like I might get a fifty cent move here just
really wanted to crash if that 240 area broke and we really got a big sell-off
we could get a huge sell-off I was really thinking we could get a huge ramp
up and really go higher here all they make it's made $684 in a matter of
minutes they're on this trade you can see kind of profit there thousand shares
and I was like okay ended up taking profit there at the 1110 area after
getting in there the 10:50 so made about 60 cents there on that move a thousand
shares not bad pretty happy with that we got it went even lower and I got to that
point where it got up here and I was like okay I'm gonna take profit just
kind of looking like we might bounce here off
240 areas kind of bouncing around there didn't want to break through 240 and got
this move higher and ended up getting a little bit more volatility and ended up
spiking all the way up here to 1180 here on you vxy so I got out early like
normal taking profit about 60 cents earlier than I should have today got a
full dollar 20 move there but and I make $600 could have made it $1200 but you
know you know you never get the top you never get the top of these moves you
know to be happy playing the VIX here playing and getting that 50 cent move
enough trading you vxy I'm keeping a close eye on the overall market using
the spy here ETF and kind of looking at support resistance area so if I'm
looking here to get long on the VIX I want to see support breaking on the S&P
500's by so when I see this 241 area break that's a good sign I want to go
long on the VIX the VIX is going to move very fast if it starts to break if spy
starts to really start moving it starts to really crash quickly the VIX the uvx
why it's a two times following the VIX so it's really going to ramp up quickly
and you can see here how it ramps up so quickly
even on a small move you know from 241 to 240 we get a huge doll or two dollar
move here on you vxy and you can see how it kind of works out you can see here on
this move it got down to 240 we bounced off we bounced off a 240 strong here on
the 5-minute jumped up from 240 reversed there on you vxy so from what 1180 we
dropped all the way down here to 1110 so we got about a 70 cent move off of that
drop so got to be very careful got to be quick to take profits when you're
trading these used two times three times ETF that really move fast when you're
kind of tracking the overall market like this and you can see amazing move if you
went long here on you vxy at that nine dollar area when the market really
started selling off you got that move all the way up there to 1180 so a lot of
opportunity here when the market is selling off when the market is crashing
there's opportunity to always there's all kinds of different vehicles to day
trade to make money off of all the different situations in the market like
you see today making $684 trading you vxy while the market was selling off and
crashing down taking profit out of the market
even while everybody else is scrambling to save their portfolios or the market's
crashing they're like oh man I'm losing all this money there's still ways to
hedge your bets and eight and make profit while the market
is selling off hope for this helps you hope this gives you guys an idea of how
to trade when the market is selling off when the market is crashing don't worry
it's not like oh the markets crashing there's no way that I can make money if
there's volatility there's money to be made and there's all kind of different
ways to trade that volatility