Great Post from “A Wealth of Common Sense”

Read the above linked to piece.

The take away from the analysis is simple.

Stay long in a bull market.

I will add to the “common sense” in the above analysis.

Stay long in a bull market, even if you take profits here and there and step aside on occasion to re-evaluate positions. No shame in that approach.

Staying long in a bull market is like walking a 5 foot wide beam 2000 ft above a gulping gorge.  It is a good risk if there is a reward on the other side.  5 ft. is plenty for a stroll. Scary as heck, but you can do it.

If you try and call the top, and remain uninvested as a result, you will lose money.

You are terrified of losing your hard earned money? You should be.  That is a problem with a solution.

Buy stocks and ETFs at support or breakout points, limit your position size until you have a profit cushion, and always have an exit strategy.

Hate taking a stop loss?  You are not alone. If you cannot take a stop, at least commit to starting all positions with a small size that can lose 50% of it’s value without hurting you too much.

Only add to winning positions, but be warned.  A big winner can become a loser if you have no plan for exit.  Take profits along the way, or trail a stop.

If you cannot do any of the above, get a pro to run your money.




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