Top 10 Bear Market Trading Tips

So the market falls 15% and look to come down more – what are investors supposed to do? Some might advise moving into cash and waiting out the storm.  Warren Buffet might say invest for the long term and roll out the interim punches. There are many ideas and opinions available. Here are some of our top tips:


Be quick

If you are day trading or short term trading, then take profits quickly.


Don’t simply buy into analysts’ recommendations. During the previous crash there were ten times more buy than sell recommendations.


Don’t hold on to bad positions – sometimes you will have to sell a stock that you love, only to get it later on at a better price.


The bigger your ego was before the bear market, the bigger your losses will be during the bear market.

Weakest stocks

Millions were made by selling short the weakest stocks during bear markets and crashes.

The trend

Three out of four stock tens to follow the overall market trend.

Rating systems

Don’t trust the ratings systems.  Know what economic data is about to be announced, check the potential impact, and know the expected numbers. Don’t be caught surprised.


Three consecutive heavy distribution days may mean a long term equities holder want to get out and go away from the market, and:


Three consecutive heavy accumulation days during a bear market doesn’t simply mean you can start buying blindly – test the waters with caution and trade smaller positions.

Falling piano

Don’t try and guess when the market will bottom out – you don’t want to catch a falling piano. Look at the charts patiently for the turn, and trade small positions in the mean time.


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