Bear Course Quiz 3 | Terrasoari

Which of the following is the number one success factor for your trading/investing plan to survive and thrive in a bear market?

Just doing what everybody else is doing.

Using Comic Sans font when I write out my bear market plan, always in bold red font.

Following through with the strategic plan I already made, and adapting as new information becomes available.

Loosening up on my gambling and shopping budgets in preparation for hitting bottom, because I may not have much fun for a while.

True or False?: It is possible to prepare your stock trading or investing strategy for a bear market BEFORE it happens.

True.

False.

Which of the following are consequences of having the best tools, a disciplined and dedicated mindset, and a proven plan in place once the bear finally comes?

Peace of mind.

Low stress.

A safeguarded portfolio.

All of the above.

How does your mindest affect how long you stay in a bear market?

Setting parameters for when things are turning bad and choose to leave. Sparing yourself from stress and your portfolio from losing money.

Mindset doesn't matter. It's 100% about the tools.

When I choose to stay in the market and my stocks hit bottom, I will have plenty of cash to buy other cheap stocks so it won't feel like I lost anything.

Embracing a bull market mindset is always the right move, because the government said the economy would recover quickly and they're never wrong.

Which of the following will likely be the MOST DIFFICULT to sell, once the bear market strikes?

The 100 shares of IBM Grandpa gave me for my birthday.

My vacation rental condo that was valued at $480,000 six months before the bear.

The inverse ETF (Exchange Traded Fund) I bought as bear insurance over the holidays.

My gold and silver holdings.

True or False?: The type of investments you've chosen will affect how quickly you can adjust to a bear market.

True.

False.

Which of the following is an example of a legitimate, refined bear plan?

I convert my stocks into cash and buy back later, when the stocks have recovered, at a cheaper price.

Buying one or more inverted ETFs, which increase in value as the stock market falls.

Preparing ahead of time by buying real estate and holding on to it to the bottom and then selling for more then I bought it for when it finally rebounds.

The first two choices are both legitimate refined bear plans.

Why is the timeframe I choose to trade such an important factor during a bear market ?

I never modify the timeframe I hold an investment. Change is bad and I blame it for inconsistency in my trading.

Targeting a longer time frame like multi-year investments makes sense because I can't predict how long a bear market will last.

A shorter timeframe like daily trading allows me to be agile and intelligently react to changing conditions, which can shift rapidly during panics.

Timeframes are only important when it comes to how long I have to wait in line for my frappucino.

True or False?: You need to learn a whole new method of reading stock charts to successfully trade inverse ETFs during bear markets.

True.

False.