Hello and welcome to another video. Stock Trading is risky. Consult with your financial advisor before trading. This video is just for educational purposes only. www.ironcladTrading.com Open an account and Receive free IBKR stock!: https://ibkr.com/referral/daniel864 The stock market has been going down since January of 2022 but there are different strategies to profit in a bear market where most stocks are going down. 1) You can buy an inverse ETF: An inverse ETF (Exchange Traded Funds) is set up so that its price rises when the price of its target stock falls. So the ETF performs inversely to the asset it’s tracking. For example, an inverse ETF may be based on the S&P 500 index. The ETF is designed to rise as the index falls in value. Inverse or short ETFs are created using financial derivatives such as options or futures. They can even be created to move at two or three times the movement of the target asset. Because of how they’re created, though, the value of these ETFs tends to decay over time. Inverse or leveraged ETFs typically try to track the daily performance of their target asset. So holding this kind of asset over a long period of time could compound losses. And the higher the leverage of an inverse ETF, the greater the potential decay of value due to their structur¬e. Example: of an inverse ETFs: SQQQ, SDS, TZA. Example: When you see the market is crashing, you can Buy SQQQ at $36 then sell later at $52 making $16 per share. 2) Another way is to short stocks: Shorting means borrowing the stocks you want to trade with and selling them later at a lower price , earning you the difference. Short selling is an advanced strategy that should only be undertaken by experienced traders and investors. Traders may use short selling as speculation, and investors or portfolio managers may use it as a hedge against the downside risk of a long position in the same security or a related one. Speculation carries the possibility of substantial risk and is an advanced trading method. Hedging is a more common transaction involving placing an offsetting position to reduce risk exposure. In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value. The investor then sells these borrowed shares to buyers willing to pay the market price. Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase them at a lower cost. The risk of loss on a short sale could be big since the price of any asset can climb much higher. Example: QQQ has been declining since Jan of 2022 If you borrowed QQQ in Feb at $361 and sold in May at $301, you would have made $60 per share shorting the stock. 3) Buying a ‘Put’ in options Trading: When you buy a put option, you are bidding on the stock to go down. Buying a put option gives you the right to sell a stock at a certain price (known as the strike price) any time before a certain date. This means you can require whomever sold you the put option (known as the writer) to pay you the strike price for the stock at any point before the time expires. Traders buy a put option to magnify the profit from a stock's decline. For a small upfront cost, a trader can profit from stock prices below the strike price until the option expires. Example: ABC company shares have a current price of $100 / share. By purchasing a put option of ABC for $5/share, you now have the right to sell 100 shares at $100 per share. If the ABC company's stock drops to $80 then you could exercise the option and sell 100 shares at $100 per share resulting in a total profit of $1,500. 4) Selling a higher priced call option: For those who are familiar with options Trading, You can sell a call on the falling stock and if the stock price ends below your strike price on expiry date, you get to keep the full premium Example: ABC company is currently trading at $100 per share. You believe the stock will go down in the near future so you sell a call at 105 and earn a premium of $150. As long as stock remains below 105 on expiry date, you get to keep the premium. We discuss all these strategies in detail on our channel so feel free to watch them. I hope you enjoyed this video and Happy Trading. Disclaimer: Stock Trading is Risky . Consult with your financial advisor before starting.