How do I make money in a bear market?

Are we in a bear market? Is every market negative and everything going down? Are you a trader and do you think you can no longer make a profit? It's still possible. And it's not even difficult. It sounds crazy but when there is a bear market you also learn the most from trading. We are happy to help you make a profit in a crisis. At the end of the blog we also have a surprise for you as a trader.

What is a bear market?

A bear market is a cycle in the market where all the prices of all crypto coins fall. Equities are therefore often in a bear market. It is a crisis that is not only playing out in the trading markets. The term bear market comes from people being insecure and investors going to take their profits. in this financial market fundamentally very bad. It is more difficult for traders to identify money. Trading crypto currencies is easier in a bull market. A bull market is a market that means the opposite.

What affects a Bear Market?

A bear market is caused by several things with a consequence that only makes it worse.

The price is dropping for a reason. If there is a financial crisis, it means that there is less money for growth. This is also often the case with companies and that can be seen in the stock market. Because that goes bad, investors also take their profits. And this creates a bad foundation. Investors are then more difficult to get back into position, so the volume slowly dries up. In a bear market of the crypto currency market, the price can fall as much as 80 to 90%. Everyone wants to get back in at the bottom. But when will the bear market end? No one can predict that. How do I find the bottom of a bear market? You can do that with an analysis. We'll come back to that shortly. You can also make money in a bear market if you are a trader.

Learn to trade in a bear market in 2023

The best learning to trade is done in a bear market. It is more difficult than trading in a bull market, but that is why you can learn to trade better. People who traded in a bull run sometimes struggle in a bear market. If you start trading in the worst you would become an extra good trader in a bull run. so in a bear market the real traders are found. If you manage to become a profitable trader in a bear market, you will be successful in all times of the market. But how do I become a good trader in a falling market?

Scalp trading in a bear market

Scalp trading is short term trading. With a scalp trade you are sometimes less than an hour in a trade. When you start scalp trading you trade for small chunks of profit. But to trade in this way you get much more return than large swing trades. That is because you can make multiple trades per day.

When can I scalp trade in a bearmarket?

You can always trade scalp. Whether the market is rising or falling. If you start trading with long and short orders, you can make money in all directions of the market. Also each chart moves the price action with waves. If you then start using support and resistance you can easily find scalp trades. There are always trades so you always have something to do.

a scalp trading strategy

A scalp trading strategy is needed by every trader who wants to trade. But we briefly explain how it works. Draw support and resistance life in the chart first. You do this in the places where the price often comes up against, as you can see in the image below.

You can learn more about a trading strategy here.

Thanks to these levels you can always trade. If you wait for the price to go to a level, you can make a trade on it with your analysis. That is simply how it should be. You can see the image below of a trade setup in a bear market of 2023.

Thanks to these levels you can always trade. If you wait for the price to go to a level, you can make a trade on it with your analysis. That is simply how it should be. You can see the image below of a trade setup in a bear market of 2023.

You can see that the price action has dropped to a lower level in a short period of time. That could lead to a price impulse, which is what happened. In this trade setup I have my stop loss just below the wicks of the price action below the level below. I put the take profit 2 levels higher because otherwise the trade was not worth the risk for the reward. This trade was successfully closed with a P&L of 2.41. This trade was made on a 5 minute chart.

Use more short orders in a falling market.

Many traders know what a long and a short order is. But short orders are generally used less. That is a pity because a short order is useful to make money in a falling market. Why would you take longs when the price is falling when there are also orders that make a return in a falling market?

What is a short order and how is it used?

A short order is also called a sell order. With a long trade you make a return when the price rises. A short order gives a profit if the price falls. That's because you don't buy the trade until you get out. With long you buy first and sell later. Short trades are the other way around.

If the market falls, you should trade with the market. If you then use longs, your risk increases because you trade against the direction. If you then use short trades in a bear market, it is the same as going long in a bull market. Traders can't forget short orders. Every successful crypto trader should know and use it. This is the difference between long and short.