day trading in bear market?
- Thread starter mute9003
- Start date
We don't really know your style, mental state, account size, risk tolerance or anything really, so that's a difficult question.
If you have an objective way to see the probability is bearish, or if you have a good eye test of the markets, than the way I handle it is just lean on taking more short setups. I just wait for a strong setup and than go short. I avoid taking longs for the most part, unless it's a really strong setup, that also offers me a tight stop.
If you have an objective way to see the probability is bearish, or if you have a good eye test of the markets, than the way I handle it is just lean on taking more short setups. I just wait for a strong setup and than go short. I avoid taking longs for the most part, unless it's a really strong setup, that also offers me a tight stop.
Idont have the ability to short with small cash account
When i try to day trade i keep getting burned by the downtrend.
i tried trading nile for few months and just keep getting my ass handed to me by constant downtrend
I traded it for few years with reasonsble success and it was always a good day trade stock because it moves alot. But lately it has been a total trash can
but thats one stock im talking about in general when on average throughout the week the trend is on a downward slope is there a different strategy i should use compared to when market is generally bullish and trend fluctuates towards upside
When i try to day trade i keep getting burned by the downtrend.
i tried trading nile for few months and just keep getting my ass handed to me by constant downtrend
I traded it for few years with reasonsble success and it was always a good day trade stock because it moves alot. But lately it has been a total trash can
but thats one stock im talking about in general when on average throughout the week the trend is on a downward slope is there a different strategy i should use compared to when market is generally bullish and trend fluctuates towards upside
I just dont understand the market right now.
Does bear market usually have alot more manipulation happening vs bull market?
In my earlier post i mentioned being able to adapt fast to changing market conditions.
Obviously the market conditions changed recently
This is what i mean when i say the ability to adapt to changes is important.
Market changed and not i dont know wtf is happening again.
By the time i figure out it changed again
Which i feel like thw big part of institutional trading strategy. If you keep changing the game there will be a large percentage of traders who lag behind and end up losing because they failed to adapt to the new rules of the game
Does bear market usually have alot more manipulation happening vs bull market?
In my earlier post i mentioned being able to adapt fast to changing market conditions.
Obviously the market conditions changed recently
This is what i mean when i say the ability to adapt to changes is important.
Market changed and not i dont know wtf is happening again.
By the time i figure out it changed again
Which i feel like thw big part of institutional trading strategy. If you keep changing the game there will be a large percentage of traders who lag behind and end up losing because they failed to adapt to the new rules of the game
Man going long is just extremely difficult right now. Not only from a technical standpoint (basically every chart is pretty bearish leaning right now), but also with the war catalyst going on, sanctions potentially shaking up how the worlds finances work and etc. So, you have to deal with the loss of integrity in the setups, on top of the already Technical bearishness.
What I mean by loss of integrity of setups, is that with lack of active buyers and long supply, you can't rely as much on simple long strategies that would typically work. A lot of times there won't be enough gas left on the trade for you to be able to take profits out of it (or enough profits to make it worth the risk).
Right now a lot of these up moves are just short covering rallies, which often don't trade exactly like a standard long setup would. You seem like a fairly smart guy and you're on the right path with your thinking, it's just what you're trying to accomplish with the tools you have is extra difficult. There are some reverse ETF's you can buy into that actually short the market, not sure if that's something that would interest or help you out at all or not.
Markets are not rigged. They kept going up because of unprecedented (until next time) liquidity. Now they are pulling back because the FEd might maybe think about considering tightening a screw on some desk somewhere.
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I would NOT\ but not would aim to buy + hold in a bear market.
I find 4 hour charts helpful, but even there the last half of the day is not 4 hours so have to use discretion.
So i would lean towrds shorter term,MAR\ without scalping where the bid ask may ruin any scalping trade.................................................................................
Friendly suggestion: No you shouldn't.
You could first learn, as it takes times, and most of the time..A lot of time.
When in a downtrend, daytrade SDS, VXX or UVXY from the long side as they'll move opposite SPY/QQQ.