Advice for Canadian Stock Traders in a Bear Market
Part of the Trading For Canadians For Dummies Cheat Sheet
When the economy takes a downturn in a bear market, your trading strategy as a Canadian investor should be to sell or short-sell fundamentally weak companies, enabling you to protect or even build your wealth. Look for companies that fit these conditions:
Poor earnings or no earnings.
Situated in a weak sector.
Operating in a declining economy.
Stock is approaching a technical sell signal on its bar chart and the company is performing worse than the average stock with low relative strength.