Thursday, October 15, 2009
How to make money in the bull and bear market conditions
If you are an avid investor in the stock market then you will be quite familiar with the bull and the bear market conditions and will not be perturbed when the conditions in the stock market change. If is possible to trade and make money no matter what the conditions in the stock market. The market will see ups and downs depending upon the domestic as well as international economic situations. You can trade safely and minimize losses if you invest in quality stocks that are not affected greatly by general market conditions. If you invest in quality stocks you are destined to make profits no matter if it is a bull or bear market. In a bear market the general trend of the stocks is downwards, while in the bull market the stocks show an upward trend. During the start of a bear market, you should take a good look at your portfolio and determine the risks and profits of each stock. Growth stocks take a beating in bear market conditions so you can replace growth stocks with value stocks in case you feel that the bear market conditions will not improve. Value stocks are low risk stocks and are more stable during the bear market conditions. Value stocks give dividends and this is an added advantage. You should be skilled and experienced and have techniques and strategies to minimize risks in any conditions in the stock market. If you have stocks of sound companies do not worry if the price lowers as your investments are in safe hands, and your stock value will increase as soon as the market rises. In the bull market investors buy early and sell at peak so that you can attain profits. Getting the right stocks and picking it up at the right time requires great skill and you should master this skill to make profits. As prices fall in bear market conditions it is necessary to trade carefully with great rational thinking. The risks of loss are higher because the market drops further and so does the price in stocks. It is not possible to gauge the changes and so you should be ready to face risks. Do seek expert opinions but do your research as well. People have make money and some people have lost money in the stock market but with the right motivation and determination you can certainly survive and make profits in the stock market.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment