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See how to protect yourself and take advantage of a bear market For Free Trial give us a missed call at 080 3063 6424
A bear market is your friend • Simply put, it means asset prices are falling. Is it bad for you? Not necessarily! • Here are 4 things you can do to stay afloat in a bear market. Make sure you have them handy for the next market crash: For Free Trial give us a missed call at 080 3063 6424
How to survive a bear market 01 Shorting"Shorting" an instrument means predicting that its value will drop in hopes of making a profit. So if you think that Snap chat for example, will drop in value, you can 'short' it by opening a ‘sell’ deal. Although there is risk involved, CFD traders enjoy this unique advantage that Snap chat owners, or the owners of any other asset do not. For Free Trial give us a missed call at 080 3063 6424
How to survive a bear market 02 DiversificationOne way to protect your portfolio is by diversifying. That means spreading out your investment by trading several different CFD instruments. This often (but not always) means that even if you lose on one or more of them, you could still profit off the one or more instrument/s whose price direction you correctly predicted. For Free Trial give us a missed call at 080 3063 6424
How to survive a bear market 03 HedgingWith hedging, you simultaneously maintain a ‘buy’ and ‘sell’ deal on one asset, at the same time. This offsets the risk during volatile trading conditions. For Free Trial give us a missed call at 080 3063 6424
How to survive a bear market 04 Limit OrdersA limit order, such as a Stop Loss, allows you to limit the amount you're willing to risk in a specific deal. Simply set the bottom price or the maximum amount, and the deal will close automatically if the market moves against your prediction. For Free Trial give us a missed call at 080 3063 6424
The bottom line The next time the market crashes, there's no need to sit it out, and wait for the storm to pass. Remember, a bear market is not necessarily a bad thing. That's because you can profit (or incur loss) based on your price predictions- be they higher or lower- as long as you manage your risks correctly. For Free Trial give us a missed call at 080 3063 6424
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