The best strategy to make money in a bull market is to recognize the trend early and make smart buys. Buy low -- sell high.
It may seem counter intuitive that you can make money during a bear market. Here are a few ways you can tame the bear:
The Long Run
History has shown that the stock market always rises over the long term. Bear markets and crashes happen, but the market always makes a comeback and eventually rises higher than it ever was before.
It may seem counter intuitive that you can make money during a bear market. Here are a few ways you can tame the bear:
- Short sell: A short sell is a trade that consists of borrowing stock you don't own, selling it, waiting for the price to fall, then buying it back at a lower price, thus obtaining a profit.
- Buy defensive stocks: This is a low-risk way for investors to keep their money in the stock market. A defensive stock is so named because its value doesn't fluctuate much. Utility stocks (energy, water, etc.) are popular defensive stocks.
The Long Run
History has shown that the stock market always rises over the long term. Bear markets and crashes happen, but the market always makes a comeback and eventually rises higher than it ever was before.
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