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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
Follow Sell Rules To Avoid Weak Market
+ A bad market can manifest itself in various ways.
+ Sometimes the start of a correction, or bear cycle, will be painfully obvious.
+ The major indexes will flash a series of big distribution days in a short time. The economy or global hot spots may contribute, ushering in bad news daily. Portfolios will quickly turn to dust.
+ But other times, the market may provide more subtle hints. You'll see only sporadic selling in higher volume. There may not be any obvious news items suggesting bad times ahead. The masses may often take a bullish stance, just as the market's hitting its peak.
+ Fortunately, you don't need tea leaves to predict when a bad market will occur. Actually, you don't necessarily need to identify a bad market as it's happening at all.
+ Following a sound set of sell rules with your own stocks will force you out of a bad market, even if you don't know it's a bad market.
+ The cardinal rule of investing is to always cut your losses at no more than 7% to 8% from your buy point. This tack allows you to avoid big losses that can cripple your portfolio and your confidence.
+ If you see your winning stocks showing choppy action, consider taking some moderate profits of about 20%.
+ Stocks that violate key support levels such as the 50-day moving average can also be sell candidates.
+ By staying attuned to how your stocks are acting, you can make informed decisions on each one.
+ Often you'll find that selling stocks at the right time will usher you safely to cash on its own, even if you haven't yet spotted any obvious weakness in the broad market.
Also, fromTraderFeed:
- High Momentum Stock Market Declines: What Comes Next? (2/28)
-
Big Down Days: What Happens Next?
(2/27)
Here's a spreadsheet from Eddie detailing the performance of every stock in the S&P 500 yesterday.
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- Are The Financials Suddenly Cheap? Part III
- Canslim.net Morning Comment And Links (for Traders)
- Are Financials Suddenly Cheap? Part II
- Are Financials Suddenly Cheap?
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- Millionaire Now!
- The 7 Steps to Millionaire Now!
- Build Your Financial Plan
- RETIRE RICH: Survival Guide
- ASSET ALLOCATION MODEL
- THE BIG ROLLOVER IS HERE
- THE END OF THE GRAND SUPERCYCLE?
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Hedge funds have made billions this year shorting the banks, [read more]
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