Investing is easier than the Wall Street gurus claim. If you watch the most prominent financial media, they will tell you that you can only make money in the stock market if you follow what Wall Street influencers suggest. However, people tend to forget that Wall Street Financial advisors are the biggest thieves in the game. The Wall Street big financial firms tell regular investors to buy a particular stock or crypto, then dumb it and leave small investors holding the bag. Competing with the most significant financial firm is tough because they have more money than small investors. However, you can beat them at their game if you time the market right, and here is how to do it.
Both the Stock and cryptocurrency market has ups and downs. Nothing goes up or down forever. There are many ways to make money when the market is melting.
THINGS TO DO WHEN THE MARKET IS GOING DOWN
Many people see the stock or crypto market downtrend as a bad thing. However, the downtrend in the market is a goldmine for intelligent investors because it is when you should be buying instead of panicking. The savvy investors keep buying because the US stock market has been on the uptrend since the beginning of the New York Stock market was established.
Dollar-Cost-Average (DCA).
People think investing everything they have into stock or cryptocurrency at once is the fastest way to get rich. However, the crypto and stock market history have proven that people like that tend to lose everything once the market goes against them. Investing all your money at once is a terrible idea. Dollar-cost averaging into an ETF, stock, or crypto is the best way to get the best out of the cryptocurrency and stock market, especially if you are investing long-term.
How to plan for the market downtrend
The best way to plan for the market downtrend is to invest heavily in cash. That way, you can invest when the bear market comes. Many investors will say that you should invest more and save less. However, when you invest and save enough to prepare for the stock and cryptocurrency market downturn, you get to invest heavily in your favorite stocks and cryptos since everything is cheap during the bear market. Savvy investors make money in the bear market. Investing is important, but cash is still the king.
Auto-Invest
Auto investment is the easiest way to beat the market. It is easy, so choose a brokerage company that offers an auto-invest option. This strategy is perfect if you want to avoid following the market because it is time-consuming. Excellent example of brokerage platforms that allow investors to set a recruiting buy (Auto-invest) is Webull, Robinhood, Moomoo, and others. Also, you can invest with Robot Advisor like Acorns if you want to be hands-free. With Acorns, you don't have to do anything because their advisors invest for you.
Buy When the market is going down.
It is emotionally damaging to see your stock or cryptocurrency portfolio going down. However, the market downtrend could be an excellent opportunity for swing and long-term investors. There's a lot of money to be made in the stock and cryptocurrency market. You have to come up with a strategy that works for you.
Buy a Bearish Options
If you own stocks, you can make a lot of money by buying a bearish stock option. For those unfamiliar with options trading, bearish options are when you bet against a particular asset class. In the bear market, you make money if the market goes down and lose when the market goes up. Trading options is like gambling. You choose the direction you think the stock price will go. Trading options can be the fastest way to make a lot of money or the quickest way to lose everything because when your options expire out of the money, you lose all your initial investments.
Buy a Bullish Option
In the downtrend market, a bull stock option can be a great asset to own because you can make a lot of money if you time the bottom of the market. It is crucial to keep an eye on the market if you are an options trader. Many people make a living on options trading. The good thing about options trading is an opportunity for whether the market is going up or down. I used to make a good amount of money trading options, but I stopped because it was time-consuming.
Inconclusion
The stock and the cryptocurrency market are always in ups and downs. The market, in general, has no formula. If the market had a recipe, every investor would be wealthy by now. Remember that the market downtrend is the best way to buy your favorite cryptocurrency projects and companies on the stock exchanges because you get them at a discount.
When you see your portfolio in the red, think about how much money you will make if your favorite stock companies go back up. Never let your emotions and the market fuds have the best of you. Choose the suitable investment that works for you, and you will become financially free sooner than you think. Always invest what you are ready to lose because anything can happen in crypto and stock markets.
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Disclaimer
Bako Invest is not a financial advisory firm. Everything we write and share on this page is for information and educational purposes only. We highly recommend doing your research before you invest your hard-earned money.
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