Both bear markets and bull markets symbolize tremendous opportunities to make money, and the key to success is to use strategies and ideas that can produce profits under a variety of conditions. This requires steadiness, discipline, focus and the ability to take advantage of fear and greed. This article will help make acquainted you with investments that can prosper in up or down markets.
A bear market is termed as a drop of 20% or more in a market average over a one year period, measured from the closing low to the closing high. In general, these types of markets occur during economic recessions or depressions, when pessimism prevails. But amidst the rubble lie opportunities to make money for those who know how to use the right tools. The following are some ways to profit in bear markets.
There are many methods to profit in both bear and bull markets. The key to success is using the apparatus for each market to their full benefit. In addition, to this, it is important to use the indicators in combination with one another to spot when both bull and bear markets are beginning or ending.
Short selling, put options, and short or inverse ETFs are just a hardly any bear market tools that allow investors to take advantage of the market weakness, while long positions in stocks and ETFs and a identify option are suitable for bull markets. The advanced turn down line and price dividend ratio will permit you to spot market tops and bottoms.
Markets trade in cycles, which mean that most investors will experience both in a lifetime. The key to profiting in both types of markets is to mark when the markets are opening to top out or when they are bottoming. The following are two key indicators to appear for.
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