I was contemplating whether I should talk about this now or later, but, with the way the markets seem to be shaking up, it feels like the right time.
There has been a lot of talk of whether the bears are looking to make another comeback. We experienced a great run for a couple months, but now we need to head back into red?
Personally, I do not believe in grouping the entire market into one distinct category, rather it is more imperative to see if your sector or particular stock is in a down movement.
I’ve talked several times about using stops, and why it is important to follow through with them: 3 Ways To Not Lose Money In The Stock Market and The Art Of Stops.
Regardless of how many years of experience or expertise we have, everybody falls into that trap every now and again. I even caught myself doing it last week.
On occasions, when a stock we are holding goes down below are initial stop point, many of us are quick to try and persuade ourselves to think that this down movement is just because of event A or B, and that it should continue higher any day now…
The problem is a little loss here turns into a little there, and, before you know it, your holding is now down 40%. Yes this has happened to me before, and I guess you could say it was a good lesson to learn.
I am telling you this now because I think we are at a point, where it may be time to lock in profits for many of your stocks. Check out a list of articles I gathered that could give you a good market outlook.
Remember, stocks do not go straight up and down. Perhaps we are due for another testing of support. If we are, then do you really want to risk the money you already made? Trust your INITIAL instincts and get out when you planned.
If you are unwary to whether your particular stocks are on the verge or have already flipped, then check out this easy trend analysis tool.