How to trade stocks in a bear market? Share practical skills for stock trading in bear markets

The stock market is divided into bear market and bull market. Among them, bull market is the most popular type of stock market, while bear market is not popular because in bear market, most stock traders will lose money, while in bull market, most stock traders will make a lot of money. What are the stock trading techniques in bear market?

Pay attention to personal mentality:

When the stock market is in a bear market, the risk of stock trading is higher than usual. At this time, people are prone to significant emotional fluctuations due to the rise and fall of stock prices. However, the more this happens, the more important it is to control one's emotions and maintain a relatively calm mindset.

Follow popular stocks:

Many stock selection methods and techniques are ineffective in bear markets, so it is important to pay more attention to popular stocks, especially those with favorable policies.

Control position:

During a bear market, it is important to learn how to control your position, try not to fill up your position, and reduce your position as appropriate to reduce investment risk. At this time, do not increase your position just to lower costs.

Not putting eggs in one basket:

In a bear market, stocks are clearly cold and people are unwilling to enter the stock market. Therefore, when trading stocks, do not buy all your funds in the same stock. You can spend a small amount of money on stocks that may rise or fall significantly in the future, but it is recommended to invest most of your funds in some leading stocks with optimistic prospects.

Timely stop loss:

When trading stocks in a bear market, it is especially important to pay attention to stop loss operations. Do not take chances and think that the opportunity to rise is about to come. This kind of thinking often leads to losses in the end.

Timely profit taking:

In the early stages of a bear market, some stock market makers often raise the stock price in order to sell, creating a trend of rising stock prices. At this time, it is necessary to follow suit and sell, and then sit back and watch the changes in the stock market.