Rule # 1 of a bear market

Rudi Filapek Vandyck from FNArena shares his #1 rule for a ‘bear market’. “Have cash. Because without cash you can’t take advantage of opportunity. Sitting in stocks and hoping for the best is usually not a good thing. If you have cash you can actually make use of the fact that good stocks fall in price.” He adds that contrary to popular opinion selling some of your losing trades can be a good source funds. Selling your ‘duds’ frees up some cash and provides capital losses to offset against your gains. Vandyck says cutting your losses can also have positive psychological impact. “I am convinced that selling a dud in your portfolio and getting it out of your system can be a good thing. The fact is you’re no longer staring at something that used to be correct and is now wrong. You’re looking at these losses and it just plays with your mind.” Watch the video: (VIEW LINK)