Sticking to a buy-and-hold strategy where you buy stock and hold onto it for better or worse at the onset of a bear market is financial suicide. People have a tough time selling, and financial advisors have an even tougher time telling them to cut their losses. Admitting failure is hard for some people to do.

Understand that investing should be a logical, practical, and unemotional pursuit. In an emerging bear market, keep the following points in mind to maximize your gains or just to minimize your losses: Before you consider any move in or out of the market, review your overall financial situation to make sure that your money and financial condition are as secure as possible.

Keep your debt at a comfortably low level.

How To Adjust Your Portfolio In A Bear Or Bull Market | Investopedia

Review your career, insurance, and so on. Schedule a financial checkup with your financial planner. Remember that cash is king.

When the bear market is coming and economic storm clouds are rolling in, keep the bulk of your money in safe, interest-bearing vehicles such as bank investments, U. Doing so keeps your money safe. In an economic downturn, defensive stocks generally outperform the market.

Defensive stocks are stocks of companies that sell goods and services that people need no matter how good or bad the economy is doing. Good examples are food and beverage, energy, utilities, and certain healthcare stocks. Trailing stops is just the active use of stop loss orders on a given stock. Presume that you usually kept a trailing stop at 10 percent below the current market price.

If the bear market is becoming more evident to you, then change that 10 percent to 5 percent. Toggle navigation Search Submit.

Learn Art Center Crafts Education Languages Photography Test Prep. RELATED ARTICLES How to Invest in Stock in a Bear Market. Trading For Dummies Cheat Sheet.

Trading Websites to Check Out.

Investopedia - Sharper Insight. Smarter Investing.

How to Use Fundamental and Technical Analysis in Trading. How to Develop Your Own Trading System. How to Invest in Stock in a Bear Market.