Bear Market Winning Strategy

Many investors don't realize that a bear market offers the opportunity to make money very fast as the market declines.

Most investors will sit nervously by as the value of their portfolio sinks almost day by day. Often they make matters worse by listening to their brokers advice of adding to the portfolio because stocks are "now cheap". Usually the stocks will only become cheaper as in a bear market values reach insanely low levels near the end. It is easy to step in and add stocks too early.

In my opinion, and I am not an investment advisor or broker, so it is only a personal opinion, money can be make much faster in a bear market than in a bull market. Why, you may ask?

The answer is simple. Stocks tend to fall much faster than they advance. When you are in a bear market and you carry out a strategy to bet on declining prices your profits can accumulate at a very fast pace. It's amazing how fast prices can fall once panic sets in among investors.

However, as lucrative as making money in a bear market can be it is not for everyone. The strategy of using put options to bet on falling prices is a high powered one. One advantage is that you can lose no more than you pay for your put options. However, should that unhappy event occur you might feel a bit blue. So you must never use anything other than risk capital to take part in powerful highly leveraged options plays.

Then you have to be prepared for the sharp rallies that are typical of a bear market. The rallies usually only last a few days at most but they can take equity out of your account in a big hurry.

There is a winning strategy to take all of this into account. To find out more go to Taipan Investor and search for "bear market".