How To Survive A Bear Market – Trading Rules And Guidelines

This is not simply a correction. This is most likely a new BEAR MARKET. And that is probably an understatement. This could turn out to be a really nasty bear market. We do not know yet how this is going to end.

This is what characterizes bear markets:

  • Sellers are in control
  • Oversold often stays oversold for a long time
  • Markets drop a lot faster than they go up
  • Bear markets burn and churn accounts with long only exposure
  • Volume and liquidity can dry up but price can still drop significantly
  • ‘Cheap’ can get a lot ‘cheaper’
  • Hope is slowly destroyed
  • Vicious bear market rallies try to suck in traders to trap them
  • Expect lots of gaps to the downside
  • It takes a long time until market participants throw in the towel

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