Profit making in Bear Market
Each and every movement of market is an opportunity to trade for someone at anywhere. Both the trends like bullish trend and bearish trend as its own value to make money. The only key success is consistency, strategies followed, discipline maintained, focus and updated time to time news on the stock gives profit at any time it may be in Intraday trading or Positional trading. Many people feel that it is very easy to see profits in bearish market rather than bull market. There is an saying and practice “Buy at bottom, Sell at top” but it can be changed for Bear market.
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Over all study survey report says that people are interested to trade more in bull market why because positive attitude and the uptrend is always treated as success trade. But according technical analysis market trends are changing rapidly and investors or traders who bets on the stock will book profit and we do not know where the market will give an reverse U turn. Bearish market in Intraday trading may sustain for short time when index is strong. Indian Stock market is totally dependent on all other Global markets with all kind of news and updates.
Bearish market can be known technically with some candlestick patterns. Still now many of traders and new comers are not aware of short selling. Short selling is the selling of stocks which we do not hold in our account but it can be sold at any time and price and can be covered and bottom price where profit can be booked. Example if we Sell 100 shares of Reliance at 800 we can buy the same at 775 so difference of Rs25 booked profit per share and the trade comes to an end.
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In bear market free falling will happen some times for some stocks, the right opportunity to knock the stock gives clear doubtless profit every time. Simple technique in bear market is we need to check the previous low formed and current technical point of view and if the price is near by low so the stock can fall minimum of 2% – 3% so it will be a very good profits in bear market. Last month 24 August 15 Monday market crash is an nearest example to say about bear market which gives free fall in all stocks and majority of the stocks touched new low due to Chinese economic condition.
Finally if there is an uptrend surely a downtrend is there,which we all to remember very well as market never goes always in a single direction where Investors and Traders never think similar. So always over bought and over sold stocks are there daily, we need to identify to see profits. So before each and every trade think twice why we trade and whats the reason behind the trade and how much time it will long stand, its just an small idea to have from our experience only. Bear market has huge profits identify and tap well to double or triple your capital in Intraday trading.