In a bullish market, the momentum is heavily in favor of buyers, making it risky to take short positions. Bulls dominate, and their strong momentum can reverse a short trade rapidly. If you do choose to short in such a scenario, ensure quick profit-taking to avoid being caught in sudden upward spikes. A cautious, flexible strategy is key.
Conversely, in a bearish market, sellers hold the upper hand, driving prices lower with consistent pressure. Going long in this environment can still be profitable, but it requires timing and patience to capture rebounds. Be mindful that the downward trend can resume swiftly, so always manage your risk carefully and avoid overextending your position.
Above all, avoid obsessing over predicting the exact tops or bottoms. Trying to perfectly time the market often results in losses, as your trades can end up fueling the very momentum you're betting against. Instead, focus on clear trends, take calculated risks, and let the market guide your strategy.
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