How we can make money in a bear market 2022

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1 year ago

Today I want to talk about how to make money in a Bear Market guys, I hope you enjoy the read.

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In which markets would it be a good idea to invest our money in a bear market?

We have to keep in mind that knowing how to decide between a short sale or credit sales, we also have other options such as short sales. We as investors always have to have as a priority very good investment options to make some money with bear markets, it is just a matter of knowing how to differentiate the movement.

Today we have an infinity of markets and products that we can take advantage of while surfing the market and there are also a lot of markets where speculation does not usually affect prices and therefore are not very profitable when investing at this time.

Options for investing in a bear market

  • Short positions, short sales or also credit sales

  • Futures, for me is a good option

Derivative markets that do not usually affect the value when they are in quotation

  • CFDs

  • Options

  • Cryptocurrencies

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What is the meaning of going short or a short sale order?

What this means is that being aware of any forecast or market movement that may affect the downward value of the stock at a certain time, we may not buy shares at a certain time, so we can sell them and then buy them back at some other time and thus generate profits with the difference generated between selling and buying them again and again guys.

Let's take an example that you can buy a stock that is priced around $800 and then place short positions when the market just starts to be in the red, that's why it's good to stay on top of the news. Having said that I must also emphasize that if we are trading when the bear market has just started and we know what we are doing we can leverage ourselves very well and receive better rewards.

If the shares that we just bought luckily fall to a price of 400 dollars, and we buy the same shares at 800 US dollars. We must make a return of the shares to the broker who lent us those shares and the profit we will get with those shares is $400 profit for each share guys, but in some cases we must deduct the interest if we have this agreed guys.

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Is it a good idea to invest our money in Futures?

The great ideas of investing our money in futures and options give us the possibility of buying this type of derivatives maintaining a bullish price and at the same time bearish if we go into a certain period of time. Investing our money in Futures, is like making a bet at a desired price in the future that an asset that currently has a value of 50 dollars, in 5 months may be worth 70 dollars, so in the present acquire the future price of that asset.

Something to know is that they are obliged to offer a guarantee to meet this obligation. If, after 5 months, the asset actually increases in value and exceeds the forecasts, they earn the difference in the price and the downside as well.

I hope you enjoyed the reading, thanks for reading!

Kolus290

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1 year ago

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I stopped using Futures haha it is like gambling.

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