Strategies for Bearish Volatile Stock Market

As you can see that the Dow Jones has taken a big dive from last year high to almost a 5 years now now. It just happened in less than 1 year. Many billionaires or rich people has lost tons of money in this volatile bear market.

What are the few key strategies or tips you can use during this bad market conditions.

1. Do Nothing

If you are a risk adverse person, the best thing you can do now is Do Nothing. Simply put your money into the saving account or fixed deposit. Walk away from this roller coaster ride of stock market now. Otherwise, you can feel the up and down day by day and you might not be able to take the heat as there is a potential that you will lose quite big amount of money in a day.

2. Bottom Fishing

if you are a medium risk taker, well, this might be a good time to start doing some accummulation of blue chips or good stock to hold as the price has hit almost an all time low now. However, you need to be aware that the market condition is still not stable at the moment and you can easily win some money as well as losing some money too.

3. Play stock market derivatives

I have heard one statement before, if you like to win, you must be prepared to lose. Well, though there are many people making money in this turbulent time, there are also lots of people making money too in this bear market. The reason, they are in the stock market derivative market like options, futures or even CFD. In this market, they can short and make money while the market heads down. However, many people said that it is very risky instrument. The main reason being familiarity and knowledge. You need more knowledge and skills to play in these derivatives compared to conventional stock market. In short, if you do have a bigger risk appetite and willingness to learn, here's the golden opportunity for you to accumulate your wealth.

All these strategies are practical and adoptable in this volatile bearish market. You  will need to decide on which strategies to take depending on your risk appetite.

Finally, trade and invest with care!