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How to Trade in a Bear Market

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|  Updated:  
2017-05-18 15:03:50
Investing in Stocks For Dummies
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When the market is reflecting investor fear and uncertainty — is a bear market in other words — your trading strategy should focus on looking to sell or short fundamentally weak companies with the following characteristics:

  • With poor earnings or no earnings

  • In a weak sector

  • In a declining economy

  • While the stock is approaching a technical sell signal on its bar chart and performing worse than the average stock with low relative strength

About This Article

This article is from the book: 

About the book author:

Lita Epstein, who earned her MBA from Emory University's Goizueta Business School, enjoys helping people develop good financial, investing, and tax planning skills. She designs and teaches online courses and has written more than 20 books, including Bookkeeping For Dummies and Reading Financial Reports For Dummies, both published by Wiley.

Grayson D. Roze has worked in the financial services industry for StockCharts.com since 2012. He now serves as a business manager at the company. He is the author of Tensile Trading: The 10 Essential Stages of Stock Market Mastery.