Risks to Check First in a Bear Market > Community gallery

A bear market can be observed through a flow of lower highs and lower lows, breaks of support, and the persistence of selling pressure. In sharp decline zones, spread widening, price gaps, and execution error on stop loss orders can all grow larger, so leverage and position size have to be reduced first. Do not conclude when the rebound will come simply because the decline is fast.

This image is a concept image produced in-house for risk management education. This post is general information and is not a solicitation to trade or a guarantee of returns.