How to Trade in a Bear Market - dummies

By Lita Epstein, Grayson D. Roze

Part of Trading For Dummies Cheat Sheet

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