Ask Colin

Swing trading would seem to be an ideal approach in a bear market. Why isn't there more written about it?

Simply because it is very dangerous.

In an uptrend, the upward swings tend to be extended, while the corrections are shortened.

In a downtrend, the downward swings tend to be extended, while the rallies tend to be shortened.

In general terms, it is always better to trade the swings that are in the direction of the big trend. So, you should look to buy rallies in bull markets and short declines in a bear market.

There is nothing to stop you trying to trade rallies in a bear market, but it requires extremely good discipline and excellent trading skills. I would not recommend anyone do it unless they have proved they are an A trader (See Dr Alexander Elder Come Into my Trading Room) in a bull market.

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