how to make money with the S&P500 index
The S&P500 is an American stock market index of 500 large companies. It is a slow rising index but it's better than leaving the money you don't need on a bank saving account.
The S&P500 is currently at all time high with a weekly RSI of 90.5 and a monthly RSI of 88.5. These RSI levels indicate overbought levels. It has been a long time since we've seen a market crash. The last one was the financial crisis in 2008 which is 10 years ago. Since then the S&P500 has gained 331%. There may be a crash coming soon...
If you want to profit from the crash, you can short the market. But it is more safe to make money from a bull market. An average yearly yield of the S&p500 index is around 10%. The last years, the index has gained more yield and the chart is getting exponential. When the market has found a bottom, you can use an ETF (Exchange Trade Fund) to invest in this index. SPXL is an ETF which tracks the S&P500 with a 3x leverage. This means if you bought the financial crisis at the bottom, you could have a x10 of your investment in 9 years.
Yield formula: 100% x (1.3)^(# of years)
Example: investment capital = $1000 and the number of years is 5
$ 1000 x (1.3)^5 = $ 3712.93
Timing the market is hard. To be sure, you want to look for confirmation that the bull market is back. Let's say you buy the SPXL after the S&P500 gained 20% after the bottom, then you would still make a 7.5 x on your investment in 9 years.
This bull market has been going on for almost 10 years. Historically, most S&P500 bull markets don't last longer than 10 years. Maybe 2018 or 2019 will be the year of a big crash. After the market crash, the market will propably go higher like the S&P500 did after all the different crashes since 1957. An investment in the SPXL could be one of the safest longterm strategies with an amazing yield of more than 7.5 x in 9 years.
I just want to give my humble opinion on some products by doing technical analysis. There may be some minor and/or major flaws. Nobody is perfect and I'm willing to learn from my mistakes through your opinions. Thank you.
https://steemit.com/money/@bo3ia/how-to-make-money-in-stocks-and-cryptocurrencies
Image source: https://www.tradingview.com/
Disclaimer: This is not financial advise.