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 below it (depending on how much you paid and invested) you can have a very hefty return. This is a much higher risk way to play the stock market than just buying the stock because eventually your options will expire. And if you have not exercised them or sold them, you lose your money.
Sell calls.
If you think the market will continue to decrease. Sell calls. People that are buying calls need the market to go up to make any amount of money. If you believe that the market is still bullish and it doesn’t reach their price, you will be able to keep there money once their option expires.
Try investing differently.
When the dow is doing badly, you may want to think about investing in something that will continue to rise, even with the bullish market. Look around there are some stocks that do not fall when the dow falls. Find those and watch them. If you feel that the market will decline for a bit, this may be a great time to invest.