How to Make Profit in a Bear Market A bear market exists when equity prices are down 20 percent or more from their highs. Bear markets often result in investors losing a lot of money, but a few simple techniques can enable you to not only survive the storm, but make a lot of money. Sell stocks short. Shorting a stock involves borrowing shares from your brokerage firm and … [Read more...]
Ways of Making Money In A Bullish Market
Making money in the stock market is hard enough but trying to make money in a declining market can sometimes be even harder. Here are some tips on how you can still make money during a bullish market times. Puts. Puts are a stock option that you buy in hopes that the stock of your choice will decline over a short amount of time. Once it reaches the strike price and falls … [Read more...]
Dow’s theory:in detail
A theory which says that the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other. The theory also says that when both averages dip below previous important lows, it's regarded as an indicator of a downward trend. Dow created the … [Read more...]
what is a bear market?
The opposite of a bull market is a bear market when prices are falling in a financial market for a prolonged period of time. A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures … [Read more...]