Following Points Can Help To Escape From The Downtrend an Be A Successful Trader.
- If you are a trader, you should never lose more than 1% of your total trading capital in any one trade because of position sizing and stop losses.
- You don’t have to fight a down trend: only take high-risk, high-reward trades.
- Make sure you stick to your trading plan.
- You can trade smaller and smaller until your system works again and you keep losing money.
- Keep your money from the last bull market.
- Make sure you don’t take a short position in a hole. Instead, short into strength when it makes sense or short when the market breaks out of a range.
- Your account will be destroyed if you play the long side of individual stocks in a strong downtrend and have a lot of them. Having a lot of long stock positions is only for markets that are going up!
- If you want to make money, you should be a mercenary trader. You should trade on the side of the market that is making money, be flexible, and follow the bears or the bulls.
To Escape From The Downtrend Just Do nothing when you don’t know what to do.