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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (1516)	3/31/1999 9:39:00 PM
From: Eric P	Respond to of 1729

Personally, I think daytrading will be more difficult in a bear market, but not for the reasons you might expect. Daytrading is easier from the long side, versus the short side due to the uptick constraint. However, on a 5-minute or hourly chart, stocks may be rising 53% of the time in a bull market and rising only 47% of the time in a bear market. => Not a lot of difference. Still plenty of up moves to take advantage of, even during a bear market. The difficulty, I believe, will be the reduced volatility that comes with a bear market. I think an extended bear market (more than 2 months of pullback) will tend to take some of the excitement out of the market. Fewer news stories, fewer traders, less volatility => less opportunity for the daytrader to profit. Just my opinion. I'd be interested in hearing others comments concerning daytrading in a bear market. What do you say? Will it be even more difficult? Easier? Why? In terms of my average returns, I have tended to average about $500/day during the last six months. Nothing spectacular (Bill Gates is safe for now on the Forbes list!), but at least I have been staying in the black! Anyway, I feel fortunate to be up 99% since January 1st and and hope that my good fortune continues. Note: January was a very good month for daytrading, February and March have not been as good as January, but successful all the same. Good luck, -Eric