How to Avoid Assets Going to Zero in a Bear Market

A bear market is not the end, but a filter. Some lose everything, while others grow stronger in adversity. The difference lies in their strategies.

Survival Rules

1. Eliminate Reckless Trading
If there is no clear trading logic, do not open a position. In a bear market, any hasty action will be punished twice as hard. Better to miss out on volatility than to be liquidated and lose money.
2. Strictly Control Position Size
Volatility intensifies, liquidity decreases. Strategies that work in a bull market may be deadly now. Reduce the risk of each trade by at least half.
3. Refuse to Add to Losing Positions Against the Trend
"If it drops further, I’ll add more," is a trap for the naive. There is a reason assets are falling; don’t catch falling knives with your bare hands.
4. Maintain Cash Reserves
Cash is also a position. The most valuable opportunities in a bear market are always reserved for those holding bullets. Never go all-in and lie flat.
5. Keep Rational Decision-Making
Emotions are the biggest enemy. Trying to recover losses after a dip, or aiming for quick riches after profits—both can easily lead to liquidation. Stick strictly to your trading plan and stay away from impulsive actions.

Core Principles

The goal of a bear market is not to get rich quickly, but to preserve capital and wait for opportunities. Those who survive the cold winter will dominate the market in the next cycle.

Patience is also a strategy.