Ch 13 | Can You Bear It?

Here is the glossary for Chapter 13. Bear markets are fast, violent, and unforgiving, so let’s cut to the chase.

Bear Market: For our purposes, this begins the second prices fall 20% or more from their recent peak. Forget the traditional “must last two months” rule.

Bouncing Out: When the market crosses the 20% bear threshold, only to temporarily climb back out into safer territory.

Covid Bear: A perfect example of a fast, violent bear market that crashed straight through the 20% threshold and completely recovered within a month.

ITMB (ITM Bear): Our hands-on strategy to profit when the market is actively tanking. It uses two indicators instead of one. You only trade this during a confirmed bear market, never during unpredictable small dips or corrections.

ITMB IN Signal: Your green light to start trading the bear. Remember, the standard ITM OUT signal is not your ITMB IN signal.

Daily Monitoring: Bear trades require babysitting. If you are waiting for an ITMB IN signal or are currently in a bear trade, you must watch the charts every single day. Hesitating for just a few days can destroy your profits.

The Sidelines: Even armed with ITMB, bear trades only make up about 5% of your time out of a bull trade. You will still spend roughly 20% of your overall time sitting on your hands with no open positions at all. Get used to the boredom.