Most of the average investors are always keen to gaining more and more information regarding the bull market. No doubt everyone wants to get successful with the boom in the trading markets. The booming markets always attract the investors, and they always try to find out how they can bring success to their investments.

However, no one tries to pay attention to the bear market. Investors must start gaining knowledge about the bear market and should try to find out the whys and how’s, to save their invested money or to find out alternatives, they can go for. The recent global recession has thrashed the world economy and it is recorded as the worst slowdown since 1930. Economists and financial experts are now focusing more and more on the bear market. They are alarming the investors to pay attention to the lessons from the bear markets so that they could be prepared for the future downturns.

Below are few lessons from the bear markets that you must learn.

Consider the alarms raised by the financial experts- prior to this recession several financial experts warned the economies about the upcoming global recession and the fall of trading markets. Early in December 2007, US economists predicted that the US economy is likely to enter the recession. And, this prediction turned true after the biggest collapse of the US economy, i.e., the fall of Lehman Brothers. Some popular journalists had shown the similar concerns. However, investors ignored such news believing that it is just an effort to raise the TV ratings.

Leave the emotions behind – emotions plays a major role in calling the slowdown in the market. Business and the trading market are the continuous process that keeping on moving in a cycle. It is a simple fundamental of cycle that what goes up must come down, but emotions distract the fact and investors become too human. The greed calls for believing the events to be permanent. Investors always keep on investing and trading in the share markets thinking that their boom will continue. However, this attitude of investors was mainly responsible for the present recession. It all began at the sales of homes in the US economy and then it dragged the whole world into the arms of recession.

Separate trading money and core investment- The payoffs amazed the investors of trading markets that they earned from gambling their invested money. Once they gain money from the share market trading they step forward and invest all the investments in the stock market. However, trading market is volatile and can take downturn any time resulting in loss of your investments at the whole. Experts always advice that the investors must save their core investments to fulfill their future dreams. This is the reason the professionals invest only in discretionary money and separate their investments out of the trade or play money.

Avoid using automated trading platforms- today, most of the investors trade the investments using the autopilot programs or trading software. Investment vehicles could be played with auto pilot systems from the scratch and as a result investors simply turn the autopilot button on. However, investors must avoid using such systems as far as it is possible or at least inspect their investments. They must invest in the markets ensuring their vehicles match their preferences and the market they are investing in. Generally, autopilot systems aim at popular and bigger vehicles, however, experts suggests that small to medium cap funds are a better alternative in the recession phase.

Even conservative and old funds possess a risk- it is a common perception of the trading markets that the old and conservative index or mutual funds are the safest investment vehicles and they are immune against downturns. However, such notions are true until the whole market takes a downturn. Even such vehicles are risky and suffer loses when the whole market collapses.

Invest with trust not with price of stocks – generally investors invest in stocks after watching their price going up. However, it is not the way. You must research on the companies earning potential and past performance and then invest in their stocks. Several companies this recession were doing well, but their stock prices were either low or stable due to the overall slowdown.