You’ve likely heard many of the potential dangers associated with the stock market: Volatile energy prices, tightening credit conditions, slowing economic growth, inflationary concerns, and the possibility of further Fed interest rate hikes in the coming months. As a prudent investor, how can you help protect the value of your stock portfolio during periods of uncertainty and heightened market volatility?
A weak U.S. Dollar, global political uncertainties, and interest in “safe haven” investments have sparked renewed speculative interest in gold. Where gold prices will go from here remains unclear, but one thing’s for certain: Investors seeking new markets and opportunities, greater trading leverage, and portfolio diversification may want to consider gold futures!
Examining charts and looking for patterns and trends is one popular method of generating trading ideas and can provide traders with at least some guidance on when and where to enter and exit positions.
Trend-following is among the most time-tested and potentially useful approaches to trading. Trading against the trend can be mentally taxing and difficult. By using trend following techniques, a trader can identify the major trend, trade with it, and stay protected with risk management tools.
During any market cycle, there will be leading and lagging sectors as well as industry groups within them. For bearish traders, the act of focusing on stocks in weak performing groups or sectors is one way to improve their probability of long-term success.
The overall market trend is important in bearish trading. It can be an extremely useful piece of information to have some ideas as to whether the current trend of the stock market – or any tradable asset - is presently bullish, bearish or neutral.
When thinking about establishing any trading strategy, considering your timeframe is very important. With Bearish strategies, however, it may be even more critical to your success due to the potentially unlimited risk involved.
Before assuming a bearish position in any security, it is important to have an identifiable reason to do so. Simply relying on a whim or a passing notion can be a very risky approach.
Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.