How can bear market stock trading make money? What are the practical skills

In stock investment, it is a common view among investors that the likelihood of making money in a bear market is low, and it is fortunate to avoid losses. In fact, if one can grasp the rules and regulations of buying and selling stocks in a bear market, the opportunity to make money will not be smaller than in a bull market.

How can bear market stock trading make money? What are the techniques?

1. Properly sell short positions: In a bear market, many investors' stocks will fall, especially during the first and third phases of the bear market. It's like the end of the world is coming. Although there will be a rebound in the second phase of the bear market, the next step will be a major decline in the third phase of the bear market. If an average investor buys stocks in the second phase of a bear market but does not sell them in the third phase, there is a great chance of investment loss. So, in a bear market, stock investment should mainly focus on selling short positions, especially when in the first and third periods of the bear market, where there are significant declines. If you sell short positions appropriately, it is easy to gain profits.

2. We should focus on short-term trading: as we all know, a bear market is a market with a sharp decline. Even if there is some rebound in the second phase of the bear market, the overall trend is still in a downward trend. Since it is in a downward trend, it is not wise to make long-term investments. So, in a bear market, short-term trading should be the main focus.

3. Be good at dual line investment: When it comes to how to trade stocks in a bear market, you need to know how to buy and how to sell. During a bull market, you can buy at a low price and sell at a high price to make money. During a bear market, it is still possible to sell at a high price and buy at a low price. Investment must have a dual track approach. Only when you understand the dual track approach, know how to buy at low prices, sell at higher prices, and know how to sell at high prices. Compensate when the price is low, this is the successful investment method.

4. Set the goal of becoming rich: Some investors may say that in a bear market, as long as they can earn reasonable returns, it is already very good. Don't think about making big money. In fact, as long as appropriate investment methods are used, one can still make big money in a bear market. So, during a bear market period, as long as we confirm that it is a truly real bear market period, we should seize this opportunity, seize it tightly, strike hard, and make wealth our dominant investment idea.

In the minds of many stock investors, a bear market is a period of decline. If you want to make money through buying and selling stocks during this period, you must follow certain stock buying and selling rules. It provides us with a general direction for buying and selling, as long as we follow this direction. The investment risk can be minimized while the profit can be significantly increased.