A Very Red Market Day

Manufacturing index dropped to 50.8 in October, down from 51.6 in September, a sign of slowdown, according to the Institute for Supply Management. Any reading above 50 indicates expansion. The manufacturing sector has grown for 27 straight months, according to the index.

The Greek government shocked financial markets with news that it would put its unpopular cost-cutting plan to a public vote. If it's defeated, the country could drop the European currency and default on its debt, which would put the European banking system and regional economies at risk of another crisis.

There is profit to be made in a falling market

You don't get to see this often. The date is 4 August 2011.

Are you emotionally ready for such day? Do you...

a) cower in fear and pray that the market will somehow rebound the next day (or perhaps, never?).

b) execute panic-selling to prevent further sleepless nights.

c) spit it all out at your local mamak stall, be the know-it-all on the economy and what will happen in the next few months, but your money is still in Fixed Deposits, earning a measly interest of 3 percent per year.

d) take some calculative risk and be the contrarian.

If you tell put the phrases "making profit" and "falling market" in the same sentence few years ago, I wouldn't be able to comprehend.

I do, now. Having said that, it is not without its risk. Quite high risks actually. Not for the faint-hearted, but that's another post for another day.

The first is by short-selling.