Ten ways to make money in present market scenario

HIGH voaltility,sharp rallies,unexpected market direction,extremely fickle sentiments and high influence of the international markets-this are but a fewofthe stock markets tanturms in thepast few months. some analystsexpect this bear-turn to continue for some moretime. the million dollar question now is "how to make money?"
It's not an easytask in the bear marcket. Market strategies have to be weel thought out; those that worked in the past may notwork thistime. thereis no single strategy that can give you profits,but a combination of the tactics and ploys that will win you this"investment Game".We would now look at 10 strategies that may be used in isolation or in combination to come outwith a winning plan that will make money in the market:

Accumulate fundamentelly goodstocks
Thriving on chaos it's a pancil situation and many fundamentelly strongs scrips are experiencing a bear hammer.A good way to judge if the stock is under valued is if it is quoting near its 52 week low. A stop loss at the 52 week low would be desirable to restrict downsiderisk.

Price volume data
Ifyou are an active trader and open to taking short term position.A thoroughtracking of the price volume data will be worth your while before entering sectors and stocks where a significant rice in volume is being accomupanied by a psitive prise movemont. These trading calls can some times make you earn a fast buck.

Sell out of money calls of the stock that you hold
likely to remain range bound of some times. this strategy restrict the up side potenial but ganerates good, consistent returns in a bear marcket.

Buy out of money puts and sell out of money calls of nifty
this strategy helps to protect down side risk of portfolios when there is uncertainly about the future direction of the marckrts. this strategy can also generate profites if nifty falls rapidly and there is pancil in the marckets as we saw in january,march and then in junethis year.sellings calls would help you in financing the cost of the puts.

Sell deep out of money calls and puts near the expire
selling calls and puys which are deep out of money can ptovide you with a limited profit when sold near the expiry date. Only time value exists in thes options but to earn limiteed profite you have to block money in the form of margins and though a rare chance but you could end with an unlimitedloss. this,needless to say is not a very good strategyforrisk anverse investors.

Trading in futures
for shotr termand active tradersit may be better to trade in future instead of buying stocks and holding in depository account. this is because one has towait for deliver to come on T+2 so as to sell those stocks.Eg. if somebody bought 100 shares of reliance on10th august 2008 then he has to wait till 13th aug. 2008 to sell them back to the market, otherwise there exists a risk of auction in case of short delivery.

Book profits,when you can
this is a bear market. buy and hold strategy is not likely towork.it is better to book your profits as and when you earn.this is not thetime to be greedy.

The "OPTIONS" option
for risk averse in vestores it is brtter to trade inoptions in order to minimise risk .buy calls of stocks or nifty if you're bullish on some particular shares or the market as a whole in the short term. conversly buy puts of stock or nifty if you are bearish. unlimited profit can be earned by incurring limited cost with no risk in this strategy.

Money calls and puts
if the markets are volatile a useful strategy is to buy both at money calls as well as puts. whichever direction the markets take in the short run, you are quite likely to make good returns in the short run.

overtrading can spoil the party
Do notover trade and take extra risks. Remeber cash is king in uncertain times. You are likely to continue getting panic situations goingahead; where cash can be very gain fully deployed. Based on the risk appetite and investment capacity one may use the above in different permutations or combinations.