Just because stocks are tumbling doesn't necessarily mean that all is lost. Sophisticated investors know how to use a down market to up their portfolio.

Listen to the podcast to learn three ways that you can benefit from a falling market.

1. Pretend you're a farmer and harvest! Tax loss harvesting means selling stocks at a loss and matching that loss against capital gains to minimize capital gain taxes. No one likes to pay taxes, and no one likes stocks to lose value, but tax loss harvesting manages to lessen the negative blow of two potentially unpleasant situations. While savvy investors often use tax loss harvesting at the end of the fiscal year, you can implement this strategy anytime.

2. Take advantage of the stock sale. What does it mean when the market is oversold? Simply put, it means prices have dropped further than they probably should have. When the markets climb, investors who want to lock in their profits sell their stocks. If too many investors sell at once, the market drops; it is oversold. Turn this to your advantage, and talk to a licensed financial advisor about buying additional shares at the lower price.

3. Keep a large cash reserve. Some investors want every penny of their savings invested, thinking that means their money is working the hardest. However, if you don't have available cash to buy a bargain (see the point above), you might lose out when a buying opportunity presents itself. Note that a large cash reserve meant for investment is not an emergency fund.

No need to get down about a down market, there are strategies that you can use to your advantage.

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