Emini Futures Trading Room

Bearish Market Environment

By Chris on 2013-08-26 in Emini Room Definitions (0) Comments

If you haven't quite been able to grasp market environments you may want to take a step back before you begin to trade.

Understand that bearish market environment doesn't necessarily mean "bad" as its context may seem. Yes, it may be bad for the long term investor, but for a short term intra day trader it means very little in the grand scheme of things. Most of the time this bearish sentiment will not have a real effect on a trade that lasts 1 minute or 10 minutes intra day. It is still a tradable opportunity and should be approached as such. For me I don't look at this as a reason to sit on the sidelines in fear of the stigma of a down market. Of course there are times when you should, but simply having a bearish feel benefits me as long as we're getting trade able swings.

Wrapping a Bearish Market As an Opportunity

So a bearish environment is not something to run from, but rather look at it as an opportunity for your trading system or style to come through. Your set ups aren't entirely effected by it simply being a "bearish environment" though these moves can tend to be very one directional. These are the times you must learn to recognize a market with no opportunity, but not spend much time in recognizing or changing to a down market.

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