“This is what characterizes Bear Markets:
- Sellers are in control.
- Oversold stays oversold for a long time.
- Markets drop a lot faster than they go up.
- Bear Markets burn and churn accounts with long only exposure.
- Volume and liquidity can dry up but price can still drop significantly.
- ‘Cheap’ can get a lot ‘cheaper’.
- Hope is slowly destroyed.
- Vicious Bear Market rallies try to suck in traders to trap them.
- Expect lots of gaps to the downside.
- It takes a long time until market participants throw in the towel.
This is appropriate Trading Behaviour during Bear Markets:
- Either in Cash or Short.
- Sell the Rallies mentality.
- Do NOT buy the dips.
- Do not even think about going Long if you are not an active and experienced trader.
How To Survive A Bear Market - Trading Rules And Guidelines
This is not simply a correction. This is most likely a new BEAR MARKET. And that is probably an understatement. This could turn out to be a really nasty bear market. We do not know yet how this is going to end. But this quote certainly nails it.”