"Can banking stocks and other stocks still be traded in a bear
market?
Yes they can, because around the Yearly lows, the expectation remains
that stocks have found their lows for the year, but can still remain
range bound for the current year:- between the timeframe lows and the
50% level, before heading lower in the following Year (double lower
low pattern:- Dilernia Principle)
In ‘bull’ market stocks normally compound 12% per year, however
the potential to make money could even be greater in a bear market than
in a bull market, even though the trader is buying stocks in a down
trend.
How is this possible?
In a Bull market stocks rise upwards, but don’t necessarily reverse back
down into double monthly lows more than once a year. If banking
stocks remain in a consolidating trading pattern in the current year, price
will come back down far more often, which increases the frequency
of trading. Whilst the exit strategies are based on exiting around the
higher timeframe 50% levels, or even using the Weekly channel highs.
Depending on the entry level this will give the trader the potential to
take between 10-15% on stocks in each 3-month period.
The expectation is that, in every Quarter price could move back down
into the lows. If the trader can use this strategy every Quarter, then there is
a potential to make around 40-50% on stocks using swing trading
patterns and channel lows in Bear Markets, as they consolidate for the
rest of the current Year....."
The Trader Trading ….. principles of successful trading….
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As per BUYS on Banks last week....
WBC is the first one to exit...
Entry $18.42 exit 20.95