On Twitter, Pete Rozin asks: “If we are topping, give us a strategy to protect our longs!!!”
Well, that is the strategy you should have in place already. Regardless of what markets are doing, you need an exit plan before things get dicey. The strategy should not depend upon any twist or turn in the markets.
Pete, let me suggest these readings to get you started:
• Protect Your Backside Limiting losses in ‘disaster’ stocks is a crucial element of money management.
• The Stop-Loss Breakdown We review several other stop-loss strategies you can use to prevent losses from getting out of hand.
• The Stock Pre-Nup Before getting emotional and the dishes start flying, consider a pre-nuptial agreement for stocks.
See if there are any things in those that are of help . . .
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