How to make money in a bear market_How to choose bull stocks

The stock market mainly distinguishes between bear market and bull market. Bear market is the last thing investors want to see, because most stocks in bear market All are falling, and only individual stocks are rising. Of course, it is not absolute that it is difficult to make money in a bear market. So, how to make money in a bear market where the overall stock market is mainly falling? The following is what the editor has collected for you on how to make money in a bear market and how to choose bull stocks. Hope this helps everyone.

How to make money in a bear market

A bear market, also called a short market, refers to a securities market in which prices show a long-term downward trend. The general trend of price changes is to continue to decline, characterized by large falls and small increases. The overall operating trend of the short market is downward. Although there are rebounds, they are lower each wave. The vast majority of people lose money. Although there are occasional opportunities, they are fleeting, difficult to capture, and difficult to operate. There is no short-selling mechanism in the Chinese stock market. Investors should try to avoid entering the market again in the short market and wait and see. Margin margin trading, stock index futures, commodity futures, etc. all have short-selling mechanisms, and short-selling can be performed to make profits.

1. Focus on the global market

For example, the A-share market may be a bear market, but the markets in other countries around the world may be bull markets. Or the global stock market is in a bear market, but the gold or crude oil market is in a bull market. We can put funds into those markets that are in a bull market. Track markets around the world that have clear trends. In this way, even when the stock market is in a bear market, we can still make money by investing in other spaces and varieties.

If your trading system is a trend trading system, then you must have this strategy. Be sure to distribute your funds across multiple products or markets. As long as there is a bull trend in a few products and markets, we can eventually make a lot of money. The famous Turtle Trading Rules follow such an investment principle. Because a market is always strong, and this state often lasts for 1 to 2 years, following the trend is a correct choice.

2. Use of financial derivatives

The nature of financial derivatives is that they can be long or short. For example, stock index futures and options can make money even when the stock market falls. . In a bear market, you can participate in these financial trading tools and make money by going short.

Some investors may want to borrow securities to go short, but it is very difficult to borrow securities in our country's market. Unless you open an account for securities lending in other international markets.

No matter which method is used to short-sell, the risk is very high, because financial derivatives represent high risks. Using financial instruments for short selling requires strong professional investment capabilities and a thorough understanding of the market. Ordinary people are not suitable for using financial instruments for short selling.

3. Make value investments

In a bear market, buy the stocks of outstanding listed companies with long-term development prospects in the future. In a bear market, continue to buy stocks of listed companies and industries with bright prospects in the future. The bear market gives us a great opportunity to buy the stocks of these good companies at lower prices. Of course, value investors should take advantage of such a good bear market opportunity. After buying it, hold it firmly for a long time in the future bull market bubble, and then sell it in batches.

In fact, this investment method is the safest and most effective, but ordinary people are often infected by the bear market environment and generally do not dare to invest in a bear market. If ordinary people do not have this professional stock picking ability, they can also buy ETF index funds in batches. ETF index funds are a representative of the overall market. Buying ETF index funds is equivalent to buying the country's economic development. In the long run, the world economy will eventually move upward and will continue to improve. Buying ETF index funds will increase as the index rises, and our wealth will also grow with this.

If ordinary people do not have the funds to cross the market, they do not have certain professional investment capabilities. And you don’t have the patience to hold stocks or other investment products for a long time. Then it's best for ordinary people to exit the bear market, because you don't have these things you need for investment, and you will definitely not make money in the long run.

How to choose bull stocks

The definition of bull stocks: Bull stocks are stocks whose growth rate and turnover rate, especially the growth rate, are much higher than other stocks within a period of time. common name. Generally, bull stocks have characteristics such as vision themes, good performance, and strong amplitude elasticity.

Methods for selecting bull stocks

1. You can comprehensively analyze the operating status of the company through the company that issued the stock. The company must be operating well and have no major operating problems.

2. The development momentum of a company often determines the future rise and fall of the company's stock. A company with strong development momentum will not have much worse corporate performance in the future, and the company's stock will also benefit.

3. The value level of stocks should increase or decrease with the development status and performance of the company. If the development of the company has stagnated, but the stock price of the company is still at a high level, the value of such stocks may be Contains more moisture.

4. Choose stocks with good historical performance, but the historical performance period of this stock should be longer and the time span should be wider.

5. The stock has a high return rate, but the return rate may be a short-term high return, or it may be a high return over a longer time span.

In addition, stocks that have been listed for a long time may also be bull stocks. In addition to being listed for a long time, bull stocks also have the characteristics of high performance growth and high dividend transfer. When choosing a long-term investment target, if a company's net profit can maintain a steady increase for 3-5 consecutive years and has good expectations, then the company has strong investment value. What you have to do at this time is to wait for a good buying point to appear. .