How to make money in a bear market? Practical skills for making money in bear markets

In the eyes of many investors, it seems unlikely to make money in a bear market. In a bear market, when stocks in the market generally decline, the difficulty of making money can be imagined. However, even in such a situation, there is a stock that is rising against the trend, which is also everyone's hope of making money. So how to make money in a bear market?

  1. Capture strong stocks at any time

This is an essential technique for making money against the trend in a bear market. The adjustment of the market and the sharp decline of the market are not relative to all individual stocks. There are bull stocks in bear markets and bear stocks in bull markets. Generally speaking, the main characteristics that give birth to the market trend of individual stocks during a sharp decline are that the main funds are trapped, the fundamentals of individual stocks are good, and strong individual stocks have a unique style. These types of individual stocks are important components of strong stocks in the market.

  2. Focus on hot topics and leaders

If the stocks in the market do not belong to mainstream hotspots and leaders, they will almost always be in a trend of adjustment and decline. The essence of short-term traders is to be able to dance with and walk with Zhuang through their unique technical advantages.

  3. Leave in a timely manner

This is the most basic operation to make money against the trend in a bear market. As long as the upward momentum of a stock disappears, especially if there is an abnormal increase in trading volume, regardless of its performance or fundamental situation, it must leave - this is the steel like discipline of short-term operations.

  4. Try to avoid the risk of market adjustment as much as possible

For long-term investors, they may disdain such practices, believing that they do not want to make big money, but artificially increase systemic risk. Some critics believe that true short-term traders are those who actively use their technical abilities to open up new battlefields in order to avoid participating in the adjustment of uncertain factors in the trend. It is common for any long-term investor to see their early profits ruthlessly swallowed up in the face of a huge decline in the market, and using short-term trading methods can help them avoid this risk as much as possible.

 5. Catch up early when there is a rise, kill early when there is a fall

Generally speaking, the launch of any stock has the potential for an upward momentum due to inertia. When an opportunity to break through is confirmed, it is necessary to make a decisive move. The timing of this move should be in the early stages, at the beginning of the outbreak, otherwise it may give the market makers a helping hand. If the stock price does not rise but falls after buying, it already indicates a misjudgment or can also be understood as a trick played by the main force. Once they realize their misjudgment, they must quickly correct it. This is the key to making money against the trend in a bear market.