When the financial markets become agitated or head for a stock market crash, you wonder how to buy stocks in a bear market. They exist in several ways.
Buy Stocks In A Bear Market
If you have a purely fundamental approach to buying stocks in a bear market (ตลาดหมี which is the term in Thai), it is best to have a wait position. Indeed, an action that has fallen by 30% may still relapse. As such, I had a bitter experience when I started on the stock market because no one catches a falling knife.
Moderate Your Share Purchases During The Downturns
If you don’t like to wait to purchase stocks like blue chips before the purge, having a tactical approach is crucial. First, wait until the bear cycle is confirmed for good after two or three legs of decline. Second, check that the actions on your checklist are not going down because of their fundamentals. After making your two observations, the best option is to buy them cheaply so as not to burn your cash. However, you must show courage in doing this.
Analyze The Behavior Of Market Participants
Since I became passionate about the financial markets, I have realized that the psychological dimension of market participants is increasingly taking place. As a result, technical analysis helps to understand their behavior and assess the right time to buy stocks down as well as up. To better demonstrate this, here is a graph that is better than a long speech. Referring to the history of the stock market, the best opportunities to purchase stocks in a bear market are when the media and mainstream press find that it is supposedly the end of the world. To buy stocks well and not to make harmful mistakes, the investor will have to consider the abundant ones