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.

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