Making money in bear markets, is much worse then making money in bull markets. Why? 2 days, 50% of the stocks already dropped 5-10% I just closed out my bull positions yesterday and today all the stocks already shot themselves. Can't pyramid, Can't build positions, Everybodys just free falling within a blink of an eye.
Fade the highs and lows of your timeframe. Take a ton of small losses and pyramid winners keeping the average price as close tht high and low of the time frame as possible in the event it reverses.
Why the talk of bear markets. Open your eyes -the indexes are still in a cyclical bull market. This drift lower is a BUYING opportunity!
You clearly don't trade real money. Perma-bullishness is just as piggish as being a perma-bear. The sadest part about your post is that you're still saying we should be up when we're down. Do you not understand that ACTIVE trading is about blocking and tackling and not making one good trade and letting it reverse on you? You say today is a buying opportunity - I agree - for the next day or so. I believe that all outlier events are fade candidates. Which begs the question - why the refusal to take some phantom profit 3 days ago? You could have saved yourself a lot of phantom money.
I like to plan out trades, put in size, work the order in with the lowest risk not trade like a blind piker.
Yes, if you trade small size you can be nimble. The size we trade does not permit us that luxury, so we have a view and we trade it. At the moment we are bullish. We buy and sell, but always net buy.
âEvery new high in a bull market is bullish...except the last.â It's not my quote but pretty darn good.
Page 294, Reminiscences of a Stock Operator: "In a bull market, and particularly in booms, the public at first makes money, which it later loses simply by overstaying the bull market."