Friday Feature: Thriving in Bear Markets(Part 1) Understand the Bear Market Psychology | Tackle Trading: The #1 rated trading education platform

Friday Feature: Thriving in Bear Markets(Part 1) Understand the Bear Market Psychology

hal gatewood OgvqXGL7XO4 unsplash

The more I trade, the more I realize the specific actions I practice in trading is a very individualistic practice.  Everyone has a different approach, system and rules that works for them.  What’s important is for you to know what works for you on a consistent and evolving basis.  Compare to the masses, you are always positioned counter intuitively.  This is where the joy and challenge sets in. 

In every industry, and every occupation, the successful top 1% performers are the ones that set themselves APART, NOT the ones that just follow the herd and become mediocre. Bear markets test this especially vividly.

Market Sentiment

Given the fact that we just had one of the worst unemployment data in history and the market just went up today (4/2/2020), where do you think the market psychology is at today?  In addition, we had so many news articles advocating for buying the bottom, which I almost use as an inverse sentiment indicator.  Do you think you should do what the masses is trying to have you do?

For those that think the market has bottomed, I don’t know if you are right.  I only trade one chart at a time.  From a psychological perspective, the true bottom of a bear market is not hope, the true bottom is when everyone you know, every news media and every channel is stating absolute depression, despondency or loss of hope.  Its in those darkest moments, you know you have reached the bottom and its time to asses a real long term upside.  Do you think we are there today?

If I had to define where we are on the sentiment curve today (4/2/2020), I would say we are somewhere between Denial stage and Fearful stage. 

VIX remains high and yet many articles stating buy the bottom sentiments. 

VIX 4 2 20

The next stage of desperation and panic won’t truly start till we are seeing homelessness increase dramatically, the sick is left untreated to die and there will be violence along with bloodshed from all the panic and anger.

Finally, we will reach the bottom when our news can truly state this is “The Depression” of a lifetime or some ghastly title like that to truly scare the public into total hopelessness.  I know I sound very pessimistic with our outlook, and it doesn’t particularly cheer me to guestimate all this.  However, psychologically, we should all prepare for what’s coming.

We have to prepare to be greedy, when everyone is fearful.  We have to stay optimistic when a time of total depression hits where everyone has lost hope, because that will be the lifetime opportunity that will make or break our future for a better world, for a stronger health care system, and for a more disciplined economic practice.

This blog serves as a reminder to you as much as it is to me to not follow the sentiment curve of the masses but trade to create opportunities for a lifetime.


Pearl Li. The Theta Finder. In the Making.

Tackle Trading: Pearl Li.

Pearl Li previously has been a product management professional for more than 10 years working at well-known companies such as Amazon and Nielsen Company. She took the leap in 2016 with Elite Legacy Education to learn about building long term wealth through financial market trading/investing. In 2018, Pearl happily left her job to pursue investing/trading fulltime producing theta style trading that generates monthly cashflow. She is thrilled to be a voice on the Tackle Trading platform to share her transformation as she goes through various phases of her growing experience.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Share this

X
Facebook
LinkedIn
Reddit
Pinterest
Telegram
WhatsApp

More Insights

Join the #1 Rated Trading Education Platform

Learn to generate monthly cash flow from the financial markets and how to grow long-term lasting wealth. Tackle Trading is an amazing online community for active traders that is led by seasoned market professionals. Tap into the power of Tackle Trading’s proven trading system and learn how easy it is to make money with the proper coaching and education.

8,800+

Members

100+

Reviews

Ready to take your trading to the next level?

Get in touch today and receive a FREE complimentary consultation.

Let us help you start trading!

Our Pro Membership gives you the tools to tackle all your trading obstacles.

Register for the Master Trader Live Workshop and get the First 15 Days on Us

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.