How To Profit From The Coming Bear Market

Everyone loves a bull market, and it seems that almost everyone fears a bear market.

Not me… I love them both.

In fact, I especially love it when stocks, or bonds, or commodities, or just about any asset class, goes down.

That’s because I make what I call “easy money” (and a lot of it) by flipping the securities I trade and invest in when markets head south.

I think we can reasonably expect a bear market before Halloween, and I’ll show you how I can see that – and how we can make some serious money when that happens and stocks tank…

It’s All in How You Look at It

The trick is to learn to “see” stocks, the market, or whatever you’re trading, turning down.

If you can see the turn coming, you’ll be able to…

  • Pocket the profits you made on the way up instead;
  • Get into positions to make quick money on the way down; and
  • Add your downside profits and the profits you saved to buy more stock at market bottoms.
  • That’s how smart traders and investors beat the market and make themselves wealthy.

    It’s about “seeing.”

    I have a good handful of metrics, chart patterns, and signals that I watch.

    When it comes to bull markets, whether it’s a rising stock or the whole market is rising, I’m watching “price action.” Price action refers to how a security trades, what its price movement tells me.

    Mostly I use technical analysis to interpret price action. Trend lines are super important to me. Second only to trend lines are support and resistance levels.

    After more than 33 years trading billions of dollars’ worth of all kinds of securities, I can almost always see a directional change as it’s happening when channels, trend-lines, and support and resistance levels are breached.

    But that’s not the only way I can tell what the market is about to do.

    Listen to the Story the Market Is Telling You

    Volume, or how many shares or contracts change hands, is super important, too.

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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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