day trading in bear market?

first, you must know
investors and not day traders want to know whether it is a bull or bear market.


day traders want to know these :

1. dead market - not tradable because the market is not moving

2. choppy market - high chance of losing $$$

3. trendy market - easy to trade. lookout for continuation and
reversal signals.

unfortunately,
most of the time, the market is dead or choppy.


so be alert and wait patiently for the trendy market.
But then you must be able to identify these 3 types of market.

An experienced trader can handle all those markets, with the caveat that the "dead" market has to be moving a little, say 3 times the spread plus comms. If by "dead" you mean the trend is flat but the range is good that can be profitable you can often get a few bounces. It always ends in a loosing trade but is profitable overall.
 
An experienced trader can handle all those markets, with the caveat that the "dead" market has to be moving a little, say 3 times the spread plus comms. If by "dead" you mean the trend is flat but the range is good that can be profitable you can often get a few bounces. It always ends in a loosing trade but is profitable overall.

"An experienced trader can handle all those markets, "
you probably heard it from the professional writers/talkers.
I heard it from my trading coaches who were professional talkers but unsuccessful traders.



dead market - I am talking about the day range that is relatively tiny.

eg today's copper market is dead.

an experienced trader trades heavily when the market is trendy.
and when the market is dead or choppy, he avoids trading it or he trades with a small quantity.
mind agility is important.

well. there are heroes who want to trade all the above 3 mentioned markets.
It is their choice. But they must make sure their trading account is
growing, not depleting so as to bring home the bacon.

anyway, do whatever you want.
It doesn't bother me.
 
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EXACTLY HOW DO PEOPLE USE 4H CHARTS!!!
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WITH 12+ 120 months\ charts, 200days of daily candlecharts+ 4 hour charts+ other time frames.
I like 'em because a 4 hour chart ends @12:30 cst.
Too bad the 2nd part of 4 hour chart is only 2.5 hours, so its not exactly perfect:D:D
 
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"An experienced trader can handle all those markets, "
you probably heard it from the professional writers/talkers.
I heard it from my trading coaches who were professional talkers but unsuccessful traders.



dead market - I am talking about the day range that is relatively tiny.

eg today's copper market is dead.

an experienced trader trades heavily when the market is trendy.
and when the market is dead or choppy, he avoids trading it or he trades with a small quantity.
mind agility is important.

well. there are heroes who want to trade all the above 3 mentioned markets.
It is their choice. But they must make sure their trading account is
growing, not depleting so as to bring home the bacon.

anyway, do whatever you want.
It doesn't bother me.

I didn't realize you were talking about daily bars. I'm describing trading With bars of 4hr 15m 5m 1m and 5sec. Totally different environment. Yes, beware of "Traders" with things for sale.
 
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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GOOD call on monday\ most of my ETFs were going down except inverse ETfs going up.
I would not call it scalping, but FED day was good day to daytrade
Bear rally, SDS had some good moves but MAR tends to be a 12 month low, in SPY + SPXL + upro ,sso.......................................... Markets are not really rigged but they tend to trend.
 
As some have mentioned, trading an inverse etf is an option. Other than that, just trading half size on days the market is down should help.
 
That is an interesting question. The best you can do is to find some systematic trading strategy, which is unrelated to the equity market. Why? Because the time when financial markets are in stress - aka they are in a bear market, is also the time of high volatility. A lot of algo trading strategies (and not just algos but most of the investment strategies per se) are very susceptible to bear markets.
So, what's a solution? Find some strategy that you can use as ahedge during a time of when equities are in a bear market
 
I just dont understand the market right now.

Does bear market usually have alot more manipulation happening vs bull market?
/QUOTE]
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OK M9093;
not really its called a downtrend. It's going up like 6 inches + down 50 feet, like a downstairs\got that??
BUT bear rallies below 200dma can be fierce, see 1973-74+ 2001 + 2002.
Inverse ETFs require no margin interest\ but a bear is simply more disorderly than an uptrending bull market\ which we are not in, most stocks/ETFs.............................................................................. :caution::caution:
 
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