As the markets and exchange traded funds (ETFs) remain decidedly bearish, investors often wonder if there’s anything they can do.

While no one has the power to turn things back around or make a bear a bull again, the one thing everyone has the power to do is to control their own reaction. We advocate never getting emotionally involved, no matter what the market conditions.

When things are going well, don’t fall in love with your holdings so much that if they go sour, you can’t let them go. When things are going poorly, don’t do anything out of sheer panic. Before acting, think about the ramifications of what you’ll do.

Simon Maierhofer for ETF Guide has some wise tips for all investors to follow:

  • Don’t invest while looking in the rearview mirror. Chasing performance is a losing game, and going with something just because it did well in the past isn’t a smart strategy.
  • Don’t get fooled by sucker rallies. Often, a “dead cat bounce” will fool investors into thinking the bad times are over, but the market often turns around and delivers a knock-out punch.
  • Don’t fight the trends. This is why we buy when the fund is up above its 200-day moving average, and sell when it’s 8% off the high or below the long-term trend line. We always make sure that we’re in when the trends are there and out when they’re not.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.