/More training materials here: https://www.varchev.com/trading-uni.htm. /
It is not clear when the current bear market will end, but one thing is certain – the stock market has cycles. It is impossible to pinpoint the exact timing of these cycles, but each bear market sets the stage and creates the conditions for the next bullish trend. Such moments create the biggest opportunities in the market, so we should take market dips as opportunities and prepare for the next bull run, precisely while things are still looking pretty bleak.
Here are some tips on how to survive the bear market cycle and prepare for future gains when the new bullish trend finally emerges:
- Focus on the market’s reaction to changes in conditions rather than trying to predict them.
Every market cycle is different, be it bullish or bearish. Many traders and investors will study historical data and patterns and try to use them to predict when the market will change direction, but often these efforts have limited potential. A signal that the market is in better condition will be evident from both the chart and the price action. It is not necessary to know the exact bottom of a bear market, the big profits will come in the coming weeks and months when a new, sustainable uptrend emerges. Success comes from reacting to changing conditions, quickly and even aggressively, rather than trying to predict the exact moment, somewhere far into the future. - Reduce your exposures and increase cash.
Perhaps the most important thing you can do during a bear market cycle is to protect capital and ensure you have sufficient liquidity when conditions eventually improve. Too often, investors will hold on to their losing positions because of their emotional attachment. It is not clear when a new bullish cycle will begin, but it is clear that you can always buy these stocks again in the future when market conditions change. This requires some vigilance, but is key, so you don’t have to worry about how low a stock can fall before finding support. When you unwind some of your positions and have liquidity, you’ll be in a much better shape to take advantage of current weakness and future opportunities. - If you want to stay active in the market, then focus on short-term trading.
Some of the best short-term trading opportunities occur during bear markets. Bounces in bear markets are usually sudden and significant, often misleading participants into thinking the downtrend is over. This creates great speculative trading opportunities, but it is very important to remain extremely disciplined by focusing on successful trade execution. - Work on your watch list, track positions and explore new ones.
The most productive thing you can do during a bear market is to look for and track stocks that you think will do well when market conditions improve. This is the best time to delve into companies’ fundamentals. There are great deals in the market every day, but many of these companies will not perform well until market conditions improve. Buying great stocks in a bad market is not a very good strategy. A great stock needs favorable market conditions to generate good returns. Spot your favorites and follow them for entry and position building as market sentiment steadily improves. - Patience and determination
The partner of the legendary Warren Buffett, Charlie Munger shares: “What we do at Berkshire is simple. We sit and wait.” The key to success is building patience and maintaining stoic discipline, and extreme determination to act when the moment is right. Bear markets can be long and exhausting. It’s important to maintain a positive attitude and be confident. , that if you are alert and patient, there will be great opportunities. That way, you will not be afraid of bear markets, but will see them as new opportunities. Building such an attitude takes time and experience in the markets, and such lessons will not find in finance textbooks because these principles are difficult to teac.
/More training materials here: https://www.varchev.com/trading-uni.htm. /

Varchev Absolute Trader
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