Everyone is concerned about the scenario of how terrible bears markets are. But there are many ways in which trading and especially learning to trade in a bears market can help you. 1. Stocks tend to go down faster then they go up. I know to most of you that does not seem like a good thing but think about this. If a stock is moving in either direction you can … [Read more...]
Aging Demographics – The Other Super Secular Trend
In Dow Theory terms, this would mean investing in a period of severe undervaluation and holding on to your stocks (or dollar cost-average into your portfolio) until the end of the bull market – such as September 1999 when the Dow Theory bear market signal was given -- and then stay out until the primary bear market has fully asserted itself. since then, I have maintained that … [Read more...]
How to Make Profit in a Bear Market
How to Make Profit in a Bear Market A bear market exists when equity prices are down 20 percent or more from their highs. Bear markets often result in investors losing a lot of money, but a few simple techniques can enable you to not only survive the storm, but make a lot of money. Sell stocks short. Shorting a stock involves borrowing shares from your brokerage firm and … [Read more...]
Dow’s theory:in detail
A theory which says that the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other. The theory also says that when both averages dip below previous important lows, it's regarded as an indicator of a downward trend. Dow created the … [Read more...]