Table of Contents
How To Make Money In Falling Market
Hello, friends today we will discuss How To Make Money In a Falling Market. There are many people who are very worried about the falling stock market, especially those who have already bought shares. And as the market collapses, their profits decrease or go into losses.
But you can take it as a golden opportunity.
Advantages of stock market Crash
When the market falls, all the shares will fall in price, and many good shares will fall.
In a word, you can get good shares cheaply at low prices.
And there are very few people who get this kind of opportunity.
Normally suppose the price of 1 kg of meat is 140 rupees, and if for some reason the shopkeeper gives you 100 rupees per kg of meat, then this is a great opportunity for you, as an example.
The stock market gives you chances. You just have to wait for the right time.
You have to keep track of when the stock market is or will fall, and you have to read the analysis of which stocks have a chance to rise again after falling.
If you do a little Google search, you will see that the share price was going up at the time of Corona, in the current 8 to 9 months, the price of almost every share has doubled to tripled. In a very short time, you can multiply the money you have invested.
Of course, we will discuss all these in more detail.
Table Content
What is Stock Market collapse?
Reason of Market collapse.
Advantages of stock market Crash
How To Make Money In Falling Market.
How can an unemployed person survive a market crash?
My Opinion
When the stock market will fall?
The question is how you know when the stock market will fall.
Big investors understand in advance when the market will fall.
Today I will tell you how they do the analysis.
Let me tell you some common methods first.
- Especially when the government’s budget is presented, this week or so, the stock market is very active, if the budget is not so good; the stock market is more likely to fall.
- Again, especially in the event of a major accident or melee, the stock market is badly affected, so the share price is more likely to fall.
- The recent turmoil on the India-China border has caused the stock market to plummet.
- Coronavirus is the main witness to the fall of the stock market in the history of India.
As a result, the situation in the stock market became badly collapsed.
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The next is the political manifesto
- Especially when the result of an election is out, the stock market is more likely to fall.
- The next is world trade, which means that the stock market of other countries affects our India stock market.
In other words, if there is an accident in world trade, it will have a bad effect on our Indian stock market.
Let Me Discuss Some Technical Methods With You.
RSI DIVERGENCE
It is a technical indicator that allows you to predict whether the stock market will fall or not.
Very effective indicator.
Read this article to know more about RSI DIVERGENCE.
Next is the DOUBLE TOP
If the Nifty creates a double top pattern on the 1-day time frame, then the Nifty may fall in price, but it may be temporary and long-term.
learn how does work the double top pattern.
Nifty Index
There are 11 indexes in the stock market, after opening the market you have to go to the NSE site and see how many of the 11 indexes are INDEX positive and how many indexes are negative. From this, you will know whether the stock market is positive or negative.
However, I would like to inform you that behind the control of the stock market are the hands of big players, who have invested a few thousand crores of rupees in the stock market, they can increase the share price in a blink of an eye and reduce it whenever they want.
Such as FII DII Etc.
But you don’t have to think so much.
“Remember to buy shares at a lower price and sell shares at a higher price, but be a good company.”
How To Make Money In Falling Market
Now we will discuss how to make money from the collapse stock market.
I would like to share with you some Technical Methods.
Short Selling
Did you know those big investors earn the most money through short selling? You can too.
But the method needs to be right.
Read more about short selling.
Open = High = Low strategy.
Suppose there is some bad news in a market and as a result of which the market may read the next day, you have to look for some stocks whose open-high will be the same.
You can Short Sell all these shares with your eyes closed. In this strategy, your stop-loss is very small.
Learn more about the Open = High = Low strategy.
45 Degree
While the stock market is Falling, all the stocks are following 45 degree and all those stocks are following the breakdown strategy.
In that case your golden opportunity. Using this method you can earn good money through short selling.
If you do Cash Trading, in this case, short selling is for intraday only.
However, those who have future & options trading can keep short-selling expiry date.
The next is the RSI Technique.
Why do you think I am just telling you the methods of short selling?
See the market is never reversed, wherever the market goes, you have to go with it. So by short selling in the falling market, you can earn good money.
RSI again
You can use the RSI indicator with a 45degree strategy, if the RSI level falls below 30-40 then you can sell short. And can take profit in a short time.
A famous line I want to tell you, Sell on Rise & Buy on Deep.
When the stock in the falling market goes up a bit, you have to sell immediately, like a wave.
HIGH BETA STOCKS
You can work on HIGH BETA STOCKS in the stock market. The movement of HIGH BETA STOCKS is extremely fast. This means that their movement is more than 3% to 10% per day.
In a word, if the price of these stocks continues to rise, many times, when your price starts falling, it starts falling very fast.
You can work with HIGH BETA STOCKS if you want, but trade very few stocks, these are very risky stocks.
Now when will you buy in the falling market?
See the price of each share in gain or fall in a rhythm or step. This is what we call support & resistance in the language of the stock market.
If you want to buy shares in the collapsing market, you have to buy from very strong support. This is the right way to buy shares.
“BUY NEAR SUPPORT & SELL NEAR RESISTANCE”
Better yet, you need to buy some shares from each strong support without investing the full money in particular support.
Learn more about the support & resistance strategy.
Learn details – Intraday Trading Tips
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Some useful Articles
Best Way to Learn Stock Market in India
What is Margin Trading in Share Market: Risks and Advantages
How Can An Unemployed Person Survive A Market Crash?
Yes, an unemployed person survive a market crash, just follow the below Rules.
- Trade on only Nifty 50 Stocks & Derivatives Stock, because these stocks are Fundamentally Strong, these stocks are survived on bearish market easily & they don’t give you loss.
- Don’t trade on F&O Segment, it’s high Risky. F&O only for expert traders?
- Follow the Nifty 50 Cycle for better Performance.
- Don’t follow TV News, group tips or calls, etc.
- Don’t trade on some specific days like election results, govt. budget, stock result/announcement/meetings days.
If you follow all of these rules (whole article) then an Unemployed Person can Survive A Market Crash & also any market situation.
My Opinion
I hope you like my article How To Make Money In a Falling Market. and your knowledge has increased it a lot.
If I have made a mistake in this article or if you have any questions, feel free to leave a comment in the comments box and I will try to answer your question as soon as possible.
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