Welcome to StockForums.info!   

Advertisments:


How to remain invested in a bear market?

Mutual Funds, Hedge Funds and ETFs

How to remain invested in a bear market?

Postby tupac94 » Sat Jun 30, 2012 10:37 pm

As we know that in NSE, we cannot short sell stocks on a delivery basis. It has to be squared up within the same day.

Another better option to play the downside is by buying put options.Here it can be done on a delivery basis.

I am new to trading and I want to know any other way(s) of how to remain invested for many days in a falling market?

1.Are there any (1)short ETFs , (2)bear funds ,(3) mutual funds?

2.Are there any other trading vehicles that can allow us to remain invested in the falling market on a delivery basis?
tupac94
 
Posts: 136
Joined: Mon Jun 25, 2012 3:53 pm

How to remain invested in a bear market?

Postby fitzwilliam66 » Sat Jun 30, 2012 10:38 pm

As we know that in NSE, we cannot short sell stocks on a delivery basis. It has to be squared up within the same day.

Another better option to play the downside is by buying put options.Here it can be done on a delivery basis.

I am new to trading and I want to know any other way(s) of how to remain invested for many days in a falling market?

1.Are there any (1)short ETFs , (2)bear funds ,(3) mutual funds?

2.Are there any other trading vehicles that can allow us to remain invested in the falling market on a delivery basis?
purchase shares in cash
and sell them in forward.
squir up your sale anytime .
shares will be in your hand.
fitzwilliam66
 
Posts: 168
Joined: Tue Jun 26, 2012 5:19 am

How to remain invested in a bear market?

Postby hayes » Sat Jun 30, 2012 10:47 pm

There are dozens of short ETFs, including "Ultra" short funds which are 2x short the index, and some are even 3x short the index. If you think the market as a whole is going down, those are good choices, as well as buying puts on one of the long index funds, such as the SPX.

If you're looking to protect your individual stocks, you could buy puts on your stocks, but for what you're wanting to do, I'd sell covered calls. That way you generate income, rather than spending money on the put premiums.
hayes
 
Posts: 169
Joined: Mon Jun 25, 2012 6:56 am

How to remain invested in a bear market?

Postby malin » Sat Jun 30, 2012 10:52 pm

If you've invested in good companies, you ride it out. Companies like JNJ (Johnson & Johnson) and MCD (McDonald's) will continue paying dividends even during a bear market, so you can still make money, and, at the lower stock prices available in a bear market, you can buy many more of their shares then than you could by dividend reinvestment alone.

During the last bear market, IBM's price bottomed out at $84/share. It is now up to $146. If you bought a lot of IBM in 2008, you're rolling in money now. The thing is to know your companies.
malin
 
Posts: 174
Joined: Mon Jun 25, 2012 9:10 am

How to remain invested in a bear market?

Postby yissachar » Sat Jun 30, 2012 10:54 pm

Buy a PUT option during BEAR Phase market against your long positions.
Keep a strict stop loss for long positions to limit your losses
yissachar
 
Posts: 166
Joined: Mon Jun 25, 2012 3:21 pm

How to remain invested in a bear market?

Postby macbeth » Sat Jun 30, 2012 11:00 pm

Derivatives. They're not regulated.
macbeth
 
Posts: 190
Joined: Mon Jun 25, 2012 1:47 pm

How to remain invested in a bear market?

Postby tupac94 » Sat Jun 30, 2012 11:03 pm

What bear market are you referring to?
tupac94
 
Posts: 136
Joined: Mon Jun 25, 2012 3:53 pm

How to remain invested in a bear market?

Postby gawain » Sat Jun 30, 2012 11:08 pm

What bear market are you referring to?
Short trading




For more detail on investment idea
[email protected]
gawain
 
Posts: 163
Joined: Mon Jun 25, 2012 10:30 am


Return to Mutual Funds

 


  • Related topics
    Replies
    Views
    Last post
cron