Trading in a bear market

Trading in a bear market is difficult and hardly worthwhile. It is difficult because because accumulation zones are often not trustworthy, so that buying in an accumulation zone is more risky than it should be. For example, if one had bought AMD in the accumulation zone that occurred in the mid 20s, one would have a substantial loss. I did not.

It is hardly worthwhile to buy an equity in the accumulation zone, because the added risk requires that the amount of the "bet" be so small that if a loss occurs it will not hurt much. However, the gain that might be made is so small in relation to the total portfolio that is is not worth the risk. So, why bother to make such trades in a bear market.

Of course, there is always the double inverse ETFs. But there is a lot of risk here too. The first is that the wall streeters have access to so much credit that they probably could force the averages to new highs on a whim. The second is that the derivatives in the reverse ETFs have never been really tested for counterparty solvency if the indexes really do fall by say 25%.