This is counter-intuitive to common sense, and doesn’t make much sense, but isn’t this just like investing? Around three months ago the stock market was trading at 12-year lows, and today, stocks have climbed upward, although gloomy economic news keeps flowing.
You don’t have to fall prey to the emotions of others, or your own.
If you are ready to enter into the market, be sure to have a strategy in place and be aware of market trends. We use the 200-day moving average as an indicator, and if a fund falls 8% off its high, it’s time to get out. This is a simple and easy to implement way to keep your emotions at bay.
For more stories about trend following, visit our trend following cateogry.