Watch more How to Invest Your Money videos: http://www.howcast.com/videos/220908-How-to-Invest-in-a-Bear-Market
Don’t hide in a cave when the market is down. Find stocks that will pay off when the bull makes its return.
Step 1:
Don’t buy stocks on margin, which means buying them with borrowed money. This is always risky, but more so in a bear market, when stocks tend to decline due to a sluggish economy.
Step 2:
Buy currencies of mature economies, which may increase in value during a bear market because they often stay more stable during periods of decline.
Step 3:
Buy stocks now at limit price below market, which means placing an order to buy stocks if and when they fall to a certain price. These orders come with a time limit.
Step 4:
Sell any emerging-market stocks, which often do poorly when the world economy is suffering.
Tip
One rule of thumb is that the percent of your portfolio invested in bonds should match your age.
Step 5:
Buy small-cap stocks, also known as emerging-growth stocks, which tend to go up in a bear market because they are not owned by mutual funds.
Step 6:
Buy initial public offerings, known as IPOs. In a bear market, only the most financially sound companies have the luxury of going public.
Step 7:
Sell your mutual funds, which tend to drop in a bear market because everyone is selling the same stocks.
Step 8:
Play it safe with bonds and dividend-paying stocks, which usually offer steady returns.
Did You Know?
After the 1929 stock market crash, stocks did not return to their pre-Depression levels until 1954. Video Rating: / 5
Different Ways to Trade or Invest in the Stock Market
★ SUMMARY ★
in this week’s lesson what I’d like to do is share with you the different ways or the methods that you can actually trade. I’m not going to go into every little concept or detail of how to execute these and how to be profitable in them.
I just want to show you the different varieties that you can actually put on for your trades or investments.
Trading based on Direction
The first way that you can trade is trade based on direction, when you’re trading based on direction there’s two directions that you can trade. You can trade stocks to the up side or the you can trade them to the down side.
If you trade stocks to the upside, you’re looking for a long or a bullish position, the reason they call it bullish is because bulls attack to the up side or long is you’re going to the up side and if you’re trading to the down side it’s a bearish position or typically a short position.
Because what you need to do is if you’re going to the long side maybe people understand the long direction because you buy a stock lower and you sell it at a higher price.
However, not everybody understands a bearish position or a short position, and the way that this works is you sell something at a higher price, let’s say 50 dollars per share and then you buy back at a lower price of let’s say 20 dollars per share.
So you borrowed these shares from a friend or your broker in this case and then you buy them back from market price, allowing you to make money on the difference of per share.
The first way to trade is based on direction and you can trade it either to the long or bullish side or to the down side or the bearish side which is the short position.
Trading based on time
The second way that you can do trade is trade based on time and trading based on time allows you to define how big of an outlook you have and trading based on time, you can have a day trader or you have a swing trader.
Now you also have a long term investor there as well but these are the main two that in the trading community people define them as.
In the day trading world you basically buy and sell a stock within 24 hours, it’s within a day, technically it’s 6 and a half hours because a trading day lasts 6 and a half hours.
A swing trader can hold a stock for multiple days, it could be 1 to 14 days, it could even be multiple months, when you’re holding a stock for multiple months.
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2011 Reprint of 1922 Edition. Full facsimile of the original edition, not reproduced with Optical Recognition Software. Richard D. Wyckoff’s writings never grow old. This book was originally published in 1922; it is still timely. Wyckoff’s modus operandi was to have a small trading account (“not over five or ten per cent of my loose capital”) and invest its profits into income-paying securities with the potential to appreciate in value. Wyckoff justified the size of his trading account psycholog
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