Ask Colin

Do you still continue building a position in an uptrending stock if there is a bear market?

If my trading plan called for holding any stocks in a bear market and I had capital that I had not yet committed to the market, yes I would. It is trickier when I already have as much capital invested as I am prepared to have in a bear market. Then I can only continue to build the position if I take off an existing position, or part of one anyway. If I had non-performing positions and I wanted to build a position that was performing, I would generally sell a non-performer to free up the capital.

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