Everyone is saying that this can be the next great depression. It seems like a lot of people want to believe that doom and gloom will happen. Well, first of all, no one knows exactly what will happen in the future, and second there are ways to make money even if the stock market does crash.

Actually traders can make large returns faster in a bears market then in a bulls market. That is because stocks tend to climb up stairs and fall out elevators. There are 3 different strategies that allow you to make money during a stock market crash.

1. Shorting

Shorting is the process of borrowing stock and then returning it. By shorting a stock you simply borrow it from your broker and then sell it. Later on you will have to buy it back and return it to your broker. The idea is to sell stocks high and buy them back lower.

2. Put Options