MarketWatch’s Stress Test For Shorting a Bear Market

Do you really have what it takes to be a day-trader and profit from both shorting the market when it dips and also timing the turns and capturing the upside when it rallies and surges ahead? Do you know how to anticipate a bear drop and go short, and how to anticipate a bull rally and go long? Do you have the “wisdom to know the difference” while riding the market-timing roller coaster? Tired of the cheeseball interrogation? Here’s an updated pop quiz created to help you test yourself. Find out if you have what it takes to trade short in a bear market, because one’s overdue. Take this 20-question “Market Stress Test.”  Answer each question “Yes” or “No” and keep track of each:

1. You’ve tried more than one new investment strategy this year?
2. Feel you’re buying and selling funds at the wrong time?
3. Rarely open up to anybody for feedback about your losses?
4. Subscribe to two or more newsletters, feel overwhelmed?
5. Can count on one hand all the good laughs this week?
6. Have a lingering resentment about someone or something?
7. You love cable news, but need more extra time to trade?
8. Rarely break a sweat when exercising the past few weeks?
9. Wonder whether you bet too much on recent investments?
10. Need more than three caffeine and alcohol drinks a day?
11. Feel “something” keeps you from making more money?
12. Frequently don’t trust your instincts or your strategy?
13. You’ve had a major family or personal loss recently?
14. Believe losses are caused by the market manipulators?
15. Are you overweight and snack often on comfort food?
16. Fear future trades may fail due to a losing streak?
17. Diet and sleep are disturbed by worries about money?
18. Your retirement portfolio’s not growing fast enough?
19. No vacation in a year, and lack an active social life?
20. Nothing (or everything) interferes with making money?

 Now grade yourself. Add up the number of yes answers. If the total of your stressors (”yes” answers) is eight or more, then short-term trading, market timing and shorting are probably too stressful and risky for you at this time.

This entry was posted on Friday, July 20th, 2007 at 12:53 pm and is filed under Business, Business Psychology, Money Savvy, My Life At Work, Personal Finance, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.