Day trading is something which excites and attracts everyone especially young ones.
Ask any seasoned Trader and he would be of the opinion, Day trading is fascinating
but equally dangerous .It becomes disastrous if the risk is not defined in a particular
trade.
Day trading to many is adrenaline rush,When a particular trade goes their way
Well it turns out to be equally depressing when trade goes against them.
Day trading requires a set of qualities and strict rules which need to be
followed to show fruitful results.Qualities would include, A trader need to be
energetic,Good reflexes and a quickdecision maker and lastly the most important one "Concentration".
These qualities are usually seen in young traders (25-35) age group.
Concentration is something which comes by practice many try meditation to
get a sound concentration.
According to a survey Good day traders are not Doctor's or Engineer's
they are Pilot's.
Fine now different kinds of market requires specific set of tactics to try to break
Them up(To trade).
BEAR market poses the biggest challenge in front of traders.
As in Bear market there is a saying"Expect the unexpected".
Like in
Bull market they say no high is final high.Bear market slogan is No low is final low:).So to trade such market Trader need to change his trading style thinking etc
in short he need to transform himself to adapt to the conditions.
Like chameleon does by changing his color according to the background.
First and foremost rule never trade first breakout in a bear market.
The first breakout usually gets sold heavily.
Now here we have two methods Fellow traders can try both and see which one
serves them well:).
Either buy the next breakout or buy the first breakout retrace find a good support
retrace by using Fibonacci.
Secondly never underestimate the Bear market rallies if you cannot trade bear market
rallies avoid trading them, You may end up loosing most of your money what you made
by shorting BEAR market.Shorting BEAR market rally without any study or clues is
like trying to find water digging in desert .
Whole 1 year return of a Bull marketcan come in one month BEAR rally.
Of course big money is to be made when Bear rally ends.Timing plays an important role
Look for clues ,Chart patterns,Waves etc to come to conclusion.
Lastly the disheartening thing Bear market tends to see failure of many chart patterns
Waves etc which makes it tedious for a trader to find a trade setup out of
cacophony.
More ideas to follow in next post
Do leave comments about your experience about trading Bear market.
Regards
Rish
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