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Trading Stocks in a Bear Market
When trading stocks in a bear market, traders seek to profit from continued downward movement of stocks and from an eventual turnaround in stock prices. When trading volatile markets, stock traders do well to use solid technical analysis tools such as Candlestick stock charts in order to objectively read market sentiment and avoid falling prey to the trading psychology demons of fear and greed. When stock prices are falling, it can be profitable for those engaged in long term investing as well as those involved in day trading. In both cases one needs to be able to anticipate when the market will bottom out. Both fundamental and technical analysis are necessary when trying to predict market trends and market reversal. Fundamental analysis commonly helps investors and traders understand the limits of stock price variation. Technical analysis with Candlestick charts taps into market sentiment and provides an objective view of when the market will turn. When trading stocks in a bear market such as seems to be emerging today Candlestick analysis helps traders spot and capitalize on trading opportunities.
Trading stocks in a bear market can seem difficult when bad news follows the sun across the globe and market after market drops even before the NSYE and NASDAQ open for business. Many choose to sit on cash during periods of high market volatility. But it is often in downward trending volatile markets where stock traders can find the best profits and those interested only in long term buy and hold investing can pick up the best bargains. Fears that the European Union will not be able to solve the Greek debt crisis and that a debt default by Greece will proceed like falling dominos to Italy, Spain, Portugal and Ireland have markets spooked. The Dow Jones Industrials fell recently to their lowest in well over a year.
2. When trading stocks in a bear
market, traders seek to profit
from continued downward
movement of stocks and from an
eventual turnaround in stock
prices.
3. When trading volatile markets,
stock traders do well to use solid
technical analysis tools such as
Candlestick stock charts in order
to objectively read market
sentiment and avoid falling prey
to the trading psychology demons
of fear and greed.
4. When stock prices are falling, it
can be profitable for those
engaged in long term investing as
well as those involved in day
trading.
5. In both cases one needs to be
able to anticipate when the
market will bottom out.
6. Both fundamental and technical
analysis are necessary when
trying to predict market trends
and market reversal.
9. When trading stocks in a bear
market such as seems to be
emerging today Candlestick
analysis helps traders spot and
capitalize on trading
opportunities.
10. Trading stocks in a bear market
can seem difficult when bad
news follows the sun across the
globe and market after market
drops even before the NSYE and
NASDAQ open for business.
11. Many choose to sit on cash during
periods of high market volatility.
12. But it is often in downward
trending volatile markets where
stock traders can find the best
profits and those interested only
in long term buy and hold
investing can pick up the best
bargains.
13. Fears that the European Union
will not be able to solve the
Greek debt crisis and that a debt
default by Greece will proceed
like falling dominos to Italy,
Spain, Portugal and Ireland have
markets spooked.
14. The Dow Jones Industrials fell
recently to their lowest in well
over a year.
15. The S&P 500 is down as well as
the NASDAQ composite.
16. The Greek government
announced that it probably will
fall short on austerity measures
which were part of the bailout
bargain.
17. The head of the US Federal
Reserve recently spoke about
shared responsibility of all policy
makers in dealing the US
economy, in a pointed reference
to continual bickering on Capitol
Hill.
