If you are an investor in the stock market, then you would have heard a lot about a bear market. It is a word used when the market goes downwards or goes below 45 degrees. When you enter the market, you enter some losses. However, this downwards fall of the market does not last for long. Though the chances of losing your investment are high, there are tricks that you can use to gain profit in the market. Here are some tips on how you can make profits when the market is down.

Choose Good Stocks for Buying

When you are buying stocks, you can get tempted to buy a stock at a cheaper rate. You may think that these stocks get rise during the period. However, when such stocks do not rise, they are known as bad stocks. Bad stocks remain down at all times even when you have the chance of recovering from your losses. Hence, choose a good stock so that it has chances to rise when the market goes up. Do your research on how well the company is doing and how profitable it is.

Look for the Company’s Dividends

Dividend plays a vital role in the stock market. The dividends of a company tell you how much income they have generated. If the company is earning well and making profits even when the market is down, then it means that it can do well in the stock market. As an investor who is seeking dividend income can profit from the stocks.

Look at the Bond Ratings of a Company

When you are in a bear market (ตลาดหมี, which is a term in Thai), you can see which company is capable of handling its debts and which is not. Bonds, in such conditions, become very valuable. A bond rating gives you an idea of how credible the company is. You can check the bond ratings of any company through bond rating agencies. Based on their rating you can choose your stock for investment.

Keeping Changing Your Sectors for Investment

When you are buying a stock, make sure that you are not choosing the same sector that you have chosen previously. Every sector performs differently under different market conditions. Hence, it is not necessary that if one sector is not doing well, the other sector will have the same situation. You may be losing in one sector but profiting from the other.

Hence, before investing in a stock or losing hope due to the downfall of the market, try to invest smartly and not let your stocks affect you.