Skip to main content

Taming the Bear: The Art of Trading a Choppy Market

Taming the Bear: The Art of Trading a Choppy Market

Christopher Tate

ISBN: 978-1-118-39560-8

Apr 2012, Wrightbooks

970 pages

$20.99

Description

A bear market may last for a week, a month or even a few years, but it can take only a day, an hour or even a few minutes for the value of an investment portfolio to be slashed to half of its former value. Some bear markets start with a bang, like the crash of ?7, others creep up slowly so that investors do not realise they are in a bear market and carry on as if nothing has happened. Of course, not even the experts can accurately forecast what the market will do. However, there are signs that can indicate a bear market is approaching and, if recognised, give prudent investors time to take steps to safeguard their portfolios. The first part of this book describes how to recognise the signals that might precede a bear market, and how to watch the various indices for sell signals. The second part deals with methods to help both investors and traders to survive by understanding what changes in volume represent, when to use a moving average and how to stay ahead of the pack. Chris Tate guides the reader step-by-step through his methods, as well as using examples from his own extensive trading experience. He uses charts to explain what to look for in the market and what action to take. This is written in his usual easy-to-understand style.

Preface 1

Bear Spotting Part I

1: The Psychology of Bear Markets 5

2: How to Identify a Bear Market 15

3: Can We Predict Crashes? 25

Bear Taming Part II

4: The Big Picture 41

5: Designing a Bear Market Trading System 53

6: Index Trading 67

7: Using Options to Trade the SPI 77

8: Portfolio Management for Bear Markets 89

9: Portfolio Management Using Derivatives 95

10: The Perversity of Markets 107

11: The Bear Market Trader’s Survival Guide 111

Appendix A: NCP Divergences 117

Appendix B: Approved Companies for Short-Selling 119

Glossary 123

Index 127