If you sat out the market’s rebound from those lows, you’ve missed a lot. The good news is that we’re still off highs in plenty of areas, and there’s room to take your positions. It can be emotional coming back to the markets after getting burned.
Using a simple strategy will help you find spots that are moving while giving you some downside protection, which can also give you the confidence to try. We prefer to keep it simple with trend following: when a position is above the 200-day moving average, it’s a buy signal; when it’s below, it’s a sell. You can read more about implementing a trend following strategy. [ETF Trend Following Plan.]
It’s been a good two years. Here’s to many more.
For more information on trend following, visit our trend following category.
Max Chen contributed to this article.