Here's a less popular point of view: I've recently observed many unemployed friends starting to trade and practice arbitrage. While this is an understandable way to save oneself, given the current overall industry downturn, it's not a good time to do this. 1) A large amount of liquidity has been withdrawn, leaving little room for speculation; even if you win, you won't reap huge profits. 2) In a bear market, the risk to capital increases exponentially, and excessive trading can easily wipe out the principal originally intended for buy the dips quality assets at bargain prices. TL;DR lacks consistent positive feedback, making it easy to doubt oneself and miss out on valuable buy the dips. In a bear market, one should be an observer, watching more and acting less. Spend less real money testing the market, observe new trends, and seize opportunities to create the rules of the game. Being a rule-maker is far better than simply participating in the game.

In a bear market, do only one thing: short.

Alpha