I can understand how the Bulls make money in a stock market-buy low and sell high,but how do bears make money?

Answer 1

By doing exactly the same thing as a bull, except they do it in reverse. They sell high, buy low. And they sell the stock before they buy it. When the price of the stock drops, they buy it back. 2000 was the year of the bear. Bears cleaned out a lot of bulls back then.

Answer 2

it is supply and demand... when a bunch of people fear the value of their stock will go down (by some other market force) they panic and sell their stocks. Just like with anything else in the market, when it gets flooded with a lot of supply, the price drops because it is less scarce. Many people invest the wrong way. They see the market is doing well, so they decide that they want a piece. Then the market starts to decline and they panic that they will lose their money, so they sell. In actuality, you are better off to invest when the market is down because you can get more shares for your buck. Then sell when the market is high... you see?

Answer 3

The Bears trade is vice versa of the Bull trade, In bull we buy low and sell high, While in Bear market We short sell the Shares (without owing it- It is possible in the derivative segment) and buy it again at a lower price level.
Thus Bulls and Bears make Money.
either WAY

ENJOY and EARN through STOCK MARKET whether it is BULL/BEAR.

Mail me for details

THANKS

Answer 4

They do it in reverse. They sell high, and then buy low.

In a 'short' sell, you borrow shares of a company, and sell them, with a promise to replace them at a later date. If the company stock goes down, you can buy them for less then what you sold them for. The stock goes back to the original owner, and you pocket the difference.

However a short sale is very RISKY. Since you are borrowing them, you are essentially taking out a loan for the value of the shares, If the price of the stock goes up, so does your loan balance.

Say you borrowed and sold 1 share for $10.

If the stock drops to 8, you can buy it back an pocket the 2 bucks.

However, if it goes up to 12, you now owe the original owner of the stock an extra 2 dollars.

Answer 5

You sell a stock high and receive your premium, then you close the transaction by buying low, so the difference is your profit.

Or you buy the put options on a stock, and as the stock goes down, the put option premium increases and that is how you profit.

A great trader will make money when stocks go up and when stocks go down.

Answer 6

Basically you either can go long on bull market or short on bear market. Going long you own the shares. Lest said you own 100 shares of IBM, I’m picking IBM just for illustration purposes, you want your investment to appreciate in value or go long. How ever if you are short it means you borrowed those shares from your broker so let said you call your broker and said I want to go short 100 shares of IBM your broker can either borrowed from some one else or use from their inventory 100 shares sell them in the market. How ever you have a remaining balance with your broker. There for you want those shares to depreciate in value so you can buy them back at a cheaper price to cover your balance from your broker and you make the difference in price.

So lets said you borrowed a Rolex watch from your friend, you go to a market and sell it for lets said 100 dollars however you still owed that watch to your friend. Then you go to some else who is selling the same watch for $50 you buy it and give it back to your friend. You just made a $50 profit. Suggest reading
Trading for dummies by MR. Duarte
Good book for starters. Good luck

Answer 7

Bears can make money the same way. While stock prices are depressed for fundamentally sound companies, they can represent a good value if you do your homework.

Answer 8

just reverse. u can sell high and buy low in stock market
many of them doing this F & O segment regularly
further query contact me.

Answer 9

They sell stock short (without owning it) or write uncovered call options or buy put options or sell furures contracts. Many ways. Only ever worry about what YOU are going to do.

Answer 10

on the football field in Chicago