Trading a bear market

Discussion in 'Trading' started by KGTrader4, May 8, 2022.

  1. Jzwu2017

    Jzwu2017

    For day trading, it doesn’t matter long or short. I use both but shorting is more difficult since most downtrends are quite jagged.
     
    #11     May 9, 2022
  2. deaddog

    deaddog

    I just go to cash. Long only funds lose in a bear market because they have to be invested. No one will buy a stock fund that doesn't have any stocks.
     
    #12     May 9, 2022
  3. zdreg

    zdreg

    Jagged and heighted volatility is whatever position you are currently in. That is the way the mind sees it.
     
    #13     May 9, 2022
  4. smallfil

    smallfil

    Borrowing stocks to short is Russian roulette. You know the risk profile for shorting stocks doing so, is unlimited to the upside. It takes just one whack to wipe you out. If you are going to short any stock, buy a put option. Your risk is limited to the cost of the put option and that is on the worst case scenario already. And stop losses will not protect you if your stock gaps up suddenly.
     
    #14     May 9, 2022
  5. smallfil

    smallfil

    For people who day trade, the day trading gurus teach you how to short stocks which is fine and dandy. How many of the day trading gurus tell their students that shorting stocks by borrowing shares, the risk is unlimited to the upside. Most of them probably, do not tell their students. If they did, the allure of day trading would fade because their gains would be much, much less and limited to the upside. That is not counting, staying 100% in cash, after they exit their long positions. Most of the stocks day traders trade are very volatile, low float stocks that jump up and down. How many of these students, without a clue, will end up blowing their account?
     
    #15     May 9, 2022
  6. mikeriley

    mikeriley

    Never trade other people's opinion.
    Trade what works for...YOU

    Dude, are you crazy, you should never short.

    $2346 in profit (market continues down)

    Are you aware of the upside in shorting?

    $4819 in profit (market continues down)

    In shorting I'm afraid of losing money.

    $5211 in profit (market continues down)

    I don't care, I'll stay in cash till the rapture.

    I'd rather be a Dragon.

    dragon.jpg
     
    Last edited: May 9, 2022
    #16     May 9, 2022
  7. KGTrader4

    KGTrader4

    VIX going back one year with SPX overlay (purple line)
    upload_2022-5-9_11-41-54.png
     
    #17     May 9, 2022
  8. KGTrader4

    KGTrader4

    Put/Call Ratio CBOE Equity Only with SPX overlay

    upload_2022-5-9_11-43-39.png
     
    #18     May 9, 2022
  9. KGTrader4

    KGTrader4

    % of stock above 50 day MA with SPX overlay

    upload_2022-5-9_11-45-2.png
     
    #19     May 9, 2022
  10. KGTrader4

    KGTrader4

    Getting close to a counter trend rally?
     
    #20     May 9, 2022