Identifying Short-Term Bottoms In Bull Markets by Stephen Beatson
When a market drops sharply, do you find yourself unable to make trading decisions for fear of losing money? You’re not alone. In such situations, you need to be able to come up with a method that helps you make trading decisions more confidently. Here, we explore different types of market bottoms and identify the variables most likely to indicate an imminent short-term rebound.
Sharp market drops can sometimes signal opportune times to enter the market. This is particularly true when the drop has been sharp and sudden, indicating that the market has probably overreacted to recent political or macroeconomic news.
The main problem with trading during very volatile times is that anxiety and the fear of losses may prevent investors from pulling the trigger, particularly when the market is undergoing an “unprecedented” correction...