{"id":1858,"date":"2010-01-12T16:23:07","date_gmt":"2010-01-12T10:53:07","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=1858"},"modified":"2010-01-12T16:23:07","modified_gmt":"2010-01-12T10:53:07","slug":"what-are-the-benefits-of-trading-in-a-bears-markets","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/what-are-the-benefits-of-trading-in-a-bears-markets\/","title":{"rendered":"What are the Benefits of trading in a bears markets?"},"content":{"rendered":"<div id=\"_mcePaste\">Everyone is concerned about the scenario of \u00a0how terrible bears markets are. \u00a0 \u00a0But there are many ways in which trading and especially learning to trade in a bears market can help you.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div id=\"_mcePaste\">1. \u00a0 \u00a0 \u00a0 Stocks tend to go down faster then they go up. \u00a0I know to most of you that does not seem like a good thing but think about this. \u00a0If a stock is moving in either direction you can make money off of it. \u00a0This is done by buying stock and calls when they go up and shorting stocks and entering puts when stocks go down.<\/div>\n<div id=\"_mcePaste\">If a stock heads down 40% in a month and you shorted it, it would be like buying a stock and having it go up 40%. \u00a0It is the same thing only backwards. \u00a0This is the main reason why many professional traders prefer to trade in a bears market.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div>2. \u00a0 \u00a0 \u00a0 The second reason is that bears markets along with volatile markets happen all of the time. \u00a0If you are just getting into the stock market it can be to your benefit to learn in a bears or volatile market.<\/div>\n<div id=\"_mcePaste\">The reason for this is that it paints a more realistic picture of how the market behavior. \u00a0There are too many people who enter the market when it is bullish and make a lot of money. \u00a0Then they lose it all when the markets crash. \u00a0Remember in a bulls market everyone is a genius.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div>3. \u00a0 \u00a0 \u00a0 On a related note it is very important to always use proper risk management. \u00a0In a bears market you never forget that, but in a bulls market you may wonder away from that ideal causing you to pick up a very bad trading habit.<\/div>\n<div id=\"_mcePaste\"><\/div>\n<div>I am sure that not everyone agrees with me but bears markets are not as bad as their reputation. \u00a0They are a natural cycle and come to remind people that the market isn\u2019t just a place where you buy a stock and expect it double in a week.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Everyone is concerned about the scenario of \u00a0how terrible bears markets are. \u00a0 \u00a0But there are many ways in which trading and especially learning to trade in a bears market can help you. 1. \u00a0 \u00a0 \u00a0 Stocks tend to go down faster then they go up. \u00a0I know to most of you that does [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[601,1642,1682,2901,918,917],"class_list":{"0":"post-1858","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-bear-market","8":"tag-bull-market","9":"tag-forex-market","10":"tag-stock","11":"tag-stock-market","12":"tag-stocks","13":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1858"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1858\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}