Bear Market Investing Strategies

 

This book is designed to upgrade investors’ knowledge with the basics of how to make investment decisions, with particular reference to bear markets, bull market corrections and recessions. But simply knowing how to make respectable buy and sell decisions is not enough.

Nobody in the history of Wall Street has ever guessed right all the time. It’s therefore necessary not only to decide how to predict market direction, but what strategies to use to minimize losses when you guess wrong, and maximize your profits when you are right.

A key principle of technical analysis is that there are certain recurring patterns of investing behavior that can be charted. But no technical tool works all the time. Though history does seem to repeat itself in a general sense, it never repeats exactly, so no one model of past action, be it a war, inflation, civil unrest, or a bear market, is sufficient to ascertain what the future will bring.