What Is a Bear Trap in Trading and How to Avoid It
5paisa Research Team
Last Updated: 13 May, 2025 01:29 PM IST

Content
- What Is a Bear Trap in Trading?
- Why Does a Bear Trap Happen?
- How to Identify a Bear Trap Before It Happens?
- What to Do If You’re Caught in a Bear Trap?
- How to Avoid a Bear Trap?
- Final Thoughts
Markets are full of surprises, and not all of them are pleasant. One such surprise that often catches traders off guard is the bear trap. While it may look like a clear opportunity to profit from falling prices, it can quickly reverse and lead to unexpected losses. Understanding how bear traps work and learning how to avoid them can help traders make more informed decisions and protect their capital.
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