8 How to make money in a bear market

8 How to make money in a bear market 

To make money in a bear market of eight simple method is what? 

Everyone loves a bull market. In a bull market, each stock will bring us good returns. But the bear market test a person's true abilities, the company's fundamentals and investor patience level. But the bear market also provides a wonderful investment opportunity, if we can identify early investment opportunities. We can make good money in a very short period of time. 

2 types of bear market investment strategy: 

1. Every autumn, the accumulation of more long-term investments in order to obtain the full benefits. Even good stocks, will be at a low price in a bear market because of a bad mood. 

2. Ultra-short-term opportunities. You should always be alert to take advantage of these opportunities. If you enter late, losses will be more because it occurs in Orchid Chemicals investors into the stock above the level of 300 cases. 

Reminder: operators will try to fool investors rose by artificially spreading rumors. Be careful with Ispat, RNRL, IFCI and Essar oil and other stocks. If the stock market does not have enough knowledge, away from these things. If you are a long-term investor, do not buy the stock at current levels mainly. 

Bear the best opportunities to make money: 

1. Overreaction: When L & T announced a slight loss of foreign exchange derivatives, we sold it, despite strong fundamentals COMAPNY. We should see this opportunity to enter these stocks. 

2. Suddenly Options: Orchid Chemicals suddenly lose 50% of its value, despite the fundamentals have not changed. This is due to sell-off of Bear Stearns. We should always pay attention to such opportunities. 

3. Over enthusiasm: the market overreaction to the Public Offer and the acquisition rumors and stock unreasonable 350 level. Ranbaxy even take orchids ,250-280 is a reasonable price. We will look at this case, short-term sales opportunities. 

4. Buyback offer: in a bear market, prices generally does not prove its intrinsic value. Therefore, the company tried to buy back shares at a higher price. Just to see what was happening Sasken corporate communications. Looking for a good buyback offer. 

5. Never chase Carriers: If a stock up without any reason, just stay away from such stocks. This is due to the operator's activities. Never invest in any stock on the basis of rumors. 

6. The key breakthrough: Some decisions will change the company's fundamentals, many attractive levels. In this case, the stock price will rise, because it occurs in Bombay Dyeing long. 

7. Bear market rally generally will not last long. So, in the short term to make money, and exit the stock. 

8. Will provide good opportunities for short-term growth, although in the short term to lose more than 50% of the stocks. We must recognize them as soon as possible before the market know them, because it occurs in ICSA India Gujarat NRE Coke. 

In a bear market, investors can not sit because investors overreact to bad news and stock in 1-2 days, will lose all benefits. These ultra-short-term opportunity is only for experienced investors can spend enough time on the stock market research and trading terminals. More and more companies are planning to buy back shares, means that we will get the chance to make quick money invested.