By having an exit strategy and an entry position, you can wade into the markets with a cool-headed logic. By implementing a stop loss, you’ll give yourself a clear-cut signal on which to act when the uptrend reverses itself and either protect any gains you may have made or put a cap on your losses. Having an escape hatch ready can give you the confidence you need to move forward.
For more insight into trend following and how to implement a strategy, check out The ETF Trend Following Playbook.
No rally is guaranteed, but there are lots of reasons to be positive right now. Want 10 more reasons? We’ve got a long way to go and it’s important for investors to be ready to act, either way.
For more stories about trend following, visit our trend following category.