Stock trading in a bearish pullback consolidation phase is not yet the time to take out any long positions.

Tighten up any stops on short sales and take short side profits where possible. Any new short positions should only be taken on the worst performing stocks in the worst performing sectors.

Todd B

When stock trading in a bear market do not enter any new long positions. Allow any open positions to hit there stops and close out. Any that remain tighten your stops or sell any long positions.

Look to be invested fully on the short side but avoid leveraging short positions unless you are experienced. Some traders prefer to sit it out altogether so it depends on your risk appetite and trading style.

Todd B.

You should stock trade a bearish transition cautiously and tighten up your stops on all positions.

Monitor all positions closely and stick rigidly to your stops. Exit any long positions as early as possible.

Start looking for candidates for short positions but only take small positions at first keeping your stops very tight.

Dave J.

When stock trading a bullish pullback you need to continue to look for good quality stocks breaking out of a trading range.

You should begin to tighten your stops and you may even look to hedge using options. However, a bullish pullback is still a bear market so continue to take full positions on breakout selecting the best perforing stocks in the best performing sectors.

Be more cautious though if this is not the first pullback

Todd B.

When stock trading in a bull market your goal is to be fully invested.

Take long positions and buy further on breakouts so that you are 100% invested. Use your margin account for leverage and loosen your stops. There’s nothing worse than getting stopped out of a rising bull market by having your stops too tight.

Remember, though the most reliable bull signals occur during the early phase of a bull market. Following later stage bull market signals the first thing you should do is start to tighten your stops again

Dave J.

Stock trading in a bullish transition phase of the market requires caution.

At this phase of the market your primary goal remains to protect your capital. However, you don’t want to miss out on a bull market if it comes so take a few selective positions. Possibly small postions that you can add to later when the direction of the market becomes even clearer.

Identify the strongest stocks in the strongest sectors and then watch for trading range breakouts. Keep stops tight and stick to them rigidly.

If you can’t find an individual stock that catches your eye, consider an Exchange Traded Fund.

Todd B

Stock trading strategies need to be adjusted to take account of the prevailing market conditions.

Over the next few weeks we’ll be looking at how you should adjust your stock trading strategy based on the current phase of the market.

It’s important to get your market assessments right In that way you can trade more confidently when your assessment is sure and look to protect your capital in uncertain times.

Dave J.