Stock Strategy: make money in a bear market 101: Be your own boss, make a business out of it and play the bounces!

There are several positive reasons why the stock market is an adequate way to create or develop an income. Ease of time and being your own boss is a huge plus but what is even better is the over head. Most business owners have what is called over head that must be calculated into the businesses finances as well. Over head typical contains but is not limited to rent money, payroll, heating and cooling, maintaining, inventory etc. This sometimes can make it or break it alone with a business. Some may say well how about these internet businesses? These concepts are great but take a lot of time (sometimes years) to get off the ground producing a decent amount of cash. There are some free ways to get started online but more than likely it will not create tens of thousands a month just a few extra bucks generally. Typically you will end up paying for hosting, a domain name, custom email addresses and even internet marketing to help get the organic traffic going. If you need to supplement your income free Hubpages.com is an amazing way to add a few bucks a month to your income.

With stocks one can research a particular one in a matter of hours (depending on the stock etc) and the only over head on a stock has is the typical seven to ten dollars one spends to make the trade. Do not get me wrong though this may add up specially if your research proves futile and you lose on your stock due to that.

The easiest thing to pick up on today is the markets vitality in either direction. For the most part it is a bear market and we have seen some potential turnarounds but for the most part the market well… to put is simply seems like it gets hit by a nuke occasionally..we see it more times than we like. But this does not change our more steady stocks like MSFT or GOOG (Microsoft and Google). Steady in the sense of ability to determine direction and flow for future projections. With this we can make money even with a downward trend. Remember the trend is your friend.

Typically with any trend one can draw in “trend lines” (ß click to learn more!) in and have an idea of the direction. You generally want at least two touches on the line but preferably three. As one can see from the diagram after the lines have been drawn in I have circled buy and sell points. For the future you just continue your lines and when it reaches the bottom line and a breakthrough the bottom has not be indicated then it may be a good time to buy. Only purchase though if the research also proves well and then it is not supposed to plummet anytime soon regardless of lines. In order for a stock purchase to be justified the correct research must be done and chart analysis.

As one can see from the second green circle on the bottom because it has touched the bottom trend line this is a good purchase point hypothetically and only if previous months/days show the same trend line. When it reaches the upper trend line the sell and again purchase when it reaches the bottom as long as the research indicates it will bounce back up. The charts only reinforce the research and vice versa.