The top ten tips to the bear market investment


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The top ten tips to the bear market investment

  1. 1. The Top Ten Tips To The Bear Market Investment
  2. 2. We are recently in a bearish market, and most investors and traders are panic. In fact, if you catch the trend correctly, you can profit trade on both bull and bear markets.
  3. 3. 1. Identify The Market Trend – Successful stock market investing when the market is bearish means identify market is on downtrend right away. And about 75% of stocks in the market will follow any trend that is happening. Therefore, to spot a trend earlier can make a difference between success and failure.
  4. 4. 2. Short Sell – In the downtrend, you can short sell, just like you are buying in the uptrend. But this is a complicated method that you need to loan stock shares to sell. You will borrow the shares with an agreement to deliver the same quantity of shares later. The shares are sold now and then repurchased when the prices fall. In this case, you are selling high now and buying low in a later date to profit.
  5. 5. 3. Don't Panic And Start Selling Everything – A common mistake many investors make is started to sell stock indiscriminately when a bear market hits. This may be done to minimize the investment losses, but eventually the market will turn around and most stocks will rebound.
  6. 6. 4. Don't Hold A Losing Position Out Of False Hope - Some investors may refuse to sell even the losses continue to pile up, either from emotions like fear or out of false hope that the market may turn around soon. But be realistic about the stock prospects, and sell to cut loss if this step seems like the best choice.
  7. 7. 5. No Margin Positions – In a bear market, it is usually not the right time to take margin positions because of the market decline. Most professionals and experienced investors advise that margin positions should be closed and avoided until the market conditions turn more favorable.
  8. 8. 6. Be Alert With The Ratings Systems - Many investors pick their ideals stock to invest with the help of the use ratings systems. But in the bear market, these systems can be unreliable, and may result in large losses instead of better stock picks for an investor.
  9. 9. 7. Find Undervalued Stocks – Invest in the bear market can be very tricky as the market is declining. But the opportunity is there. Spot those undervalued stocks which have a lower price than the anticipated stock value in the near future. If a company is solid and promising, and now is at a very low stock price, this is your good bargain. You can always have this opportunity in a bear market.
  10. 10. 8. Only Choose Stocks From Solid Companies – A successful and wise stock market investment means performing extensive research on each stock considered. Only invest in quality stocks from solid companies will help to protect the investment value over time regardless of any short-term market changes.
  11. 11. 9. Long Term Investment – A successful stock market investment is usually looking at the long-term prospects of a stock, and this is true in a bear market as well as a bull market.
  12. 12. 10. Watch For Signs Of A Bull Market Approaching - Both bull and bear markets are cyclical, and eventually a bear market will turn bullish. Smart investors watch the market carefully, so that the first sign of the market turning is spotted and they will act on quickly.
  13. 13. GOOD LUCKS AND HAPPY PROFITABLE TRADING Discover The Profit-Pulling Wall Street Trading Secrets THEY Don't Want You To Know About! ==> Grab your FREE "Developing A Trading System" Report now ==>
  14. 14. Discover The Profit-Pulling Wall Street Trading Secrets They Don't Want You To Know About... ==> Grab Your FREE “Developing A Trading System” Report Now! ==>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.