Every time a bears market comes around people panic. They panic because the stocks they bought that made money when the markets were bullish are losing money when the markets are bearish. They don’t know that if you want to make money during a bears market you should trade bearishly. When the markets go down many market professionals make a killer by implementing bearish strategies. Today I will teach you 5 bearish strategies used to make money while the market is heading down. So get ready to ride the market crash all the way to the bottom with us. 1. Shorting stocks. Your broker has many long term stocks which they hold. They do not care what happens to them as long as they make a profit in the long run. Let’s say it is trading at $100 you can borrow their stock and sell it. This makes you an instant $130. Then if the stock drops to say $90 you can buy it back at $90 and give it back to your broker. In this example you made $40 per share.

2. Buying puts. When you buy a put for a stock you buy the right to sell a stock at a given strike price. That way if the stock’s price drops our puts price goes up. If we bought a put with a strike price of $130 on the same stock for $6 we could have made money while the stock goes down as well. The difference between the puts strike price and the stock is $40, so your put would be worth at least $40. Buying puts is a highly leveraged way of trading and will eventually expire worthless if not sold by its expiration date. Read more

A stock watch list is something you will need. It is a list of stocks that you think you can make money off of, either on the upside or the down side. These are stocks you put on the side and check regularly for a buy signal. Let me give you an example. Suppose you find a great stock that is in an uptrend. This stock just hit resistance. You really like this stock, but chances are it will come down from resistance to support. You don’t want to buy right now. So, you wait. You put it on your watch list and check it every now and then to see if it will look better later. You wait for it to be on support, or maybe even a break in resistance and then you buy it. How do you create a stock watch list? Every time you hear about a stock write it down and pull up a chart on it later. If it looks like something you can make money off of go ahead put it on your watch list. I have occasionally just typed in random symbols to see what pops up. Sometimes I like the stock that pops up so I put it on my list. Keep a list of stocks you like some were and keep adding to it. In no time you’ll have a plenty of stocks you’re watching. Read more

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