Bear Market: Prioritize Survival Over Quick Profits

In a bear market, the most dangerous thing is not falling prices — but the illusion that you can perfectly catch the bottom. When the main trend is still downward, every buy decision is a counter-trend trade. And since it’s a counter-trend trade, you must accept the possibility that you are wrong.

1. Buying in a Downtrend = Going Against the Flow When the larger timeframe structure remains bearish, all long positions should be viewed as counter-trend trades. Don’t expect too much. Don’t go all-in. And always prepare a stop-loss plan.
2. Short-Term Rallies Are Fragile and Easy to Break In a downtrend, upward rebounds are mainly technical corrections. Prices can rise quickly for a few sessions, but if the larger structure hasn’t changed, these gains are usually unsustainable. Many people lose money by confusing “rebound” with “trend reversal.”
3. Breakouts Are Easily Traps The bear market is an ideal environment for fake-outs. Prices break resistance, creating the illusion of a new trend starting, then quickly reverse. Without clear confirmation from the larger timeframe, always be suspicious of overly “perfect” breakouts.
4. Prices Fall Faster Than They Rise A psychological fact: during panic, selling pressure is often stronger and more sudden than buying. Therefore, declines tend to be faster and deeper than rebounds. This makes risk management even more critical.
5. Fragile Support, Steel-Strong Resistance In a downtrend, support levels are easily broken, while resistance becomes very strong. The common mindset is “sell on rebounds,” not “buy on dips.”
6. Good News Only Creates Short-Term Waves Even seemingly bullish news often only causes short-term pumps. When the main trend hasn’t changed, large capital flows prefer to exit rather than accumulate long-term.
7. Patience Over Continuous Trading Overtrading in a bear market is the fastest way to drain your account. Sometimes, the best trade is no trade at all. Holding cash is also a position.
8. Capital Preservation Is More Important Than Catching the Bottom Hitting the exact bottom only yields one profit. But protecting your capital gives you the chance to participate in the entire cycle later. If you still have capital, you still have opportunities. If you lose your capital, all analysis becomes meaningless. A bear market is not for those who want to get rich quickly. It’s for those who know discipline, patience, and endurance. Remember: A bull market helps you make money. A bear market tests whether you deserve to keep that money.