 Guys, how you doing? This is your boy Rich from Rich TV Live and richtv.io, an ecosystem built by investors, for investors. And today I wanna talk to you about the fact that we are in a bear market. We've really been in a bear market for 14 months. You can clearly look at the charts and see that the stock market's been kind of down or sideways since February of last year. So I'm not really surprised about where we are in the market. Cryptocurrency also in a bear market. A lot of people forget that five days ago, Bitcoin was at 40K and now Bitcoin has been flirting with 30K, so down 25% in five days. So the markets are going down, cryptos are going down. So yesterday I'm getting phone calls all over the place. Rich, you gotta start to short, Rich. You need to start to short, Rich. Well, I don't like to short. Shorting is inherently risky. A very small percentage of the market actually successfully can short and win because if you short something and it goes up, you can lose everything. You can lose more than you have. So shorting is huge, huge, huge risk. So what I would do instead is I would consider using the CBOE volatility index, the VIX. You can short the market by buying the VIX if you think that the market's going to continue to sell off, which it has been really for now close to 15 months. When the market goes back up and has a relief rally like we've had today, that is the time to start thinking about buying the VIX. And in my opinion, we're gonna go through the video. I'm gonna show you the zones that I would consider buying the VIX. Now, when people start saying it's time to short the market, it's probably already too late. So chances are this is not a really good time to short the market. Everything is really down. So it would have been good to short the market when everything was up and then you could have made money on the way down. Now that everything is down, we could definitely go lower. So I'm not saying you can't go lower, but I believe that we're kind of near a bottom. So I would wait for the market to rally, go back up. And if we get the Dow Jones back to 35, 36K Dow, that's where I would be looking to position myself in the VIX expecting that the market's gonna go back down again and you making the money on the way down with the Dow Jones at 36 all the way down to 32. But with the Dow Jones now at 32 and at 52 week lows, how much lower can we go from here? That's really the question that everyone's trying to figure out. So in today's video, I wanna talk to you about how to make money in a red market, how to make money in a down market, how to make money using volatility without shorting because shorting is extremely risky. You can actually buy the VIX and make money in a down market. And let's take a look at this video and explain exactly how we do it. Don't touch that dial. Make sure you subscribe for future updates. And if you like these videos, please smash the like button, comment down below. Let's take a look at the VIX and the chart, shall we? Hey guys, how you doing? This is Rich from Rich TV Live and I've been getting calls nonstop from investors saying, what do we do Rich? The market is crashing. What do we do? How do we make money in this down market? So I wanna make sure that everybody understands that everyone's saying to me, we should be shorting. And I'm like, well, shorting isn't something that's easy. It's also not something that I really like to do. And it's something that very few people are doing. And by the time people decide that they wanna short, just like how people like to decide that they wanna buy, it's already too late. And typically people buy things at the top and people short things at the bottom because the market is not that easy. And by the time everybody decides that something is high or something's low, it's usually too late. So I wanna talk about the VIX, the volatility index. So one of the reasons why I don't like to short and why I don't short is that shorting is inherently risky. And if you get short squeezed and you short something and it goes up on you, which the market has been up for 13 years before this year. So we've seen a lot of shorters get absolutely annihilated and literally go out of business, especially when we had Memania last year with GameStop and AMC, a lot of shorters literally got short squeezed and got put right out of business. So I don't like to short because it puts a huge amount of risk on your portfolio and your assets. But if you're looking to make money on a down market, one of the best ways to do it is with the VIX. So you can see here with the VIX in June of 2021, it was at $14. Yesterday it hit right around 35. It's sitting right now today because the market is green again having a relief rally. You can see that the VIX today is down 5%. So when the market goes up and strong, the VIX will typically go down. And if the market goes down because the market is weak, the VIX will typically go up. So you can see here, if we actually zoom in to the one month, how it has really jumped here. So this is to me, like when I look at this, I get a little bit concerned because when people are like, oh, short the market, I'm sitting there thinking, the market's already made its move. What do you mean short the market? Like the market's already made its move. Now, not to say the market can't go lower, anything's possible, but I just don't know if that's in the cards because look at this move in the VIX. Like the VIX made this big move up here from 1999 and yesterday it was right around 35. So it's made this big move up. So wasn't that the time to short? Wasn't that the time to buy the VIX when it was at this level? And look at the date, April 22nd, and today is May 10th. So only three weeks ago, it was at $20 and it goes up from $20 to $35 essentially, which is like 75% in three weeks. That was the move. To short now, which is what I was being told yesterday and I didn't agree with it because all the indicators were telling me that the market was heavily oversold. It was too late to short at that point and clearly you can see the market's having a relief rally and had you bought the VIX today or yesterday when it was at its high of 35, you'd be down 6% today. So with investing, timing is everything. So if you wanted to buy the VIX, the way I would do it is I would wait for a day like today when everything is green and that's when I would buy it. Now, because you can see this has clearly made this move up and it's doing just a little pullback here, I don't think this is the time to buy the VIX, but that's just me, right? That's just me. Now I'll take a look at a chart and I'll look at the one year chart and the one year chart tells me a story that this has come down when the market's been hot very aggressively, so you have to be really careful and it's been as down as high as 14. So if you buy this right now, thinking the market's gonna continue to go down, you could take a huge amount of risk because we've seen this go down to 14 and if it goes back to 14, your investment's gonna get crushed. Now, the reason why I like the VIX is that you don't actually have to worry about getting short squeezed because this is a stock. So because this is a stock that you can buy and hold, if it goes down to 14, you can literally hold it and then if the market crashes again and rips back up to 35, you can sell without ever having any concern of being short squeezed and losing your entire account. So that's why I'd rather buy a stock that is, but I don't wanna buy it at these prices. I wanna make that very clear. Where I'd be looking to buy this would be at 20 or less. So if this goes to 20 or less, that's in the zone where I'd be thinking about positioning myself and that's how I would treat this. But this is a stock. You don't have to worry about getting short squeezed. And if you think that the market's going to continue to go down like it has been really for the last 14 months we've been sideways or down. And that's why you see the VIX is high. It's near the top, right? Look at the VIX, the highest it's been was at 39 in January, right? And you can see it's been as high as 37. But for the most part, when it gets to this level, it goes down. So that tells me that the market right now is near a bottom. But the question is, will it continue to go lower? Or does it bounce from here? Today it bounced from here. So that is a really good sign that the market is having a relief rally so far today. And if that continues, that's a good sign to show that the market isn't going to continue to go lower, maybe won't go into a recession. Maybe we won't go into a depression, but we will be able to bounce from here. So I'm not telling anyone to buy the VIX. The reason why I'm making this video and the reason why we want everyone to join us at richtv.aio and richpigsdaily.com is so that we can teach you guys how to have good investing strategies and how to make money in every single market. And there is opportunities in every market. And this is a tool that you can use to really arm yourself. And you can go to richtv.aio, join our trading community and we've got chat rooms that we are building and we want you to go into those rooms and talk with other members about these trade ideas and give your opinions about what you think is going to happen in the market so that we can, as a community and the ecosystem, come up to a good decision. But the reason why I like this is if the market does continue to go down, if you believe the market will continue to be going down, you can buy the VIX and you can make money on a down market. This is a way to hedge your bets. This is a way to make money in the down market. This is a way to make money where there is nowhere to make money. Like yesterday was a 90% day where like 90% of stocks were down yesterday and cryptocurrencies. It was considered a 90% day. One of the five worst days in the history of the stock market. And I felt like we'd have a relief rally today and we did. So it's really good sign to see that. Now will that continue? I'm not sure. It's going to be a really long summer. So I wanted to arm everyone with the tool that can make the money in a red market. And I think that the VIX is a great tool. It had a huge day yesterday when the market was deep red. The VIX was at 15% yesterday. Now the market is having a relief rally today. The market is deep green and the VIX is down 6%. So this is a tool that you can use in a red market. Obviously the market is green today. You can see it's down 6% and it looks like it's going to continue to go down on the daily because it looks as though we're having a very strong relief rally today. So love to know your opinion on this. Do you own the VIX? Do you buy the VIX? Do you trade the VIX? This has been actually one of the better trades all year. And if we go to let's say the six month you can clearly see how it's made these huge moves up and down, up and down, up and down, up and down because we've been in a very choppy market. We've been in a very choppy market for about 14, 15 months now where the market literally just goes up and then it comes down and then it goes up and then it comes down. So if you're going to short you want to really short when the market is up and the market is not really up today. This is just a relief rally. I wouldn't be thinking that this is the sign that you should be buying up. I think that we are near a bottom. You can see that on the chart. So we're near a bottom. So things could definitely bounce from here and they are today. However, we're in May and typically the summertime is the slowest time for the stock market. So June, July, August, I think the next 120 days are going to be really tough. I think that we will have a rally between September and December. We typically always do. It would be very historic if we didn't but if history repeats itself these next three and a half to four months May, June, July and August are going to be really choppy. Liquidity will probably dry up and slow down and there's going to be a lot of volatility and I just don't see what is going to be the momentum for the market. So that's why I believe if you're looking to make money on a down market, the VIX is a great tool. I think everyone should consider using it. I just think right now it's too high. So I wouldn't buy it now. But if it gets to that $20 mark or lower which would probably mean that the Dow Jones is at like 34, 35, 36K down. We had a big rally. That's when I would buy the VIX when everything goes back up. And then when everything goes down you're going to be making money on the VIX going up. But I would be looking at getting it at around $20 or less. If it goes down to that zone that would be my signal that, hey, maybe the market's going to go down again because we're in this tough environment, high inflation. The Fed is going to be increasing interest rates in Canada and the United States. So that puts a lot of pressure on the markets. And you can see the market is having this really choppy movement. And everyone's asking me, should we be shorting? And I don't like to short but if I'm going to make money on the market going down I will buy the VIX. I'm just not buying it right now because I feel like it's too high. And I think that we need to see the VIX come down to 20 or less. And then I would consider buying it. And if I buy it, I will let you guys know. Thank you guys for watching. If you're not winning, probably not watching. We bring you the winners, we bring you the analysis and we bring it to you first. What do you think about the VIX? Is this something you're planning on using? Is this a tool that you're going to use against a down market? Love to know, comment on the video. And we will create a chat room for the VIX after this video as well that we will post on richtv.io. Love to have you join that chat room, talk about it and let us know if you're using this tool if you're a boy rich or rich to be live and richpigsdaily.com and richtv.io and I'm out.