Thursday 14 July 2011
Easy How to: Profit in Both Bear and Bull Markets
In both Bull and Bear markets, one aspect is relatively clear: the general direction the market is trending towards, as this is in essence the basic definition of each market. (The definition of a Bear Market is when prices are low or declining. The definition of a Bull Market is when prices are high or rising). In financial market day trading, it is the psychology behind trader momentums that create trending patterns, and creates market dynamics. Experienced traders are all too familiar with spotting trader momentums, and trading accordingly. However, the same psychology of momentum backfires on traders when a market reverses, stop losses are hit, and reversal momentum builds quickly. In
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