Now for the record, I am not saying that it is not possible. My own personal opinion is that I am not thrilled with the world economy and that very bad things are quite possible, particularly between now and October.
But now that the stock market is “selling off” and “panic appears to be setting in”, many investors and traders are asking the question, “what should I do now?”
The answer is – or at least it should be – very simple:
Continue to follow your well thought out investment/trading plan that incorporates acceptable position sizing and strict risk controls.
Now that wasn’t so difficult was it? If you have been investing/trading without this, please note:
Jay’s Trading Maxim #3: There are two keys to investing/trading success: 1) Adopting a method that has a realistic probability of making money in real-time (i.e., you must have a plan), and, 2) Having the emotional and financial wherewithal to follow the plan.
And while we’re at it, also remember:
Jay’s Trading Maxim #3a: If you are going to go to the trouble of creating an investment/trading plan, you might as well make it a good one. And if you have a good trading plan, you might as well go ahead and follow it.
So upon further review, perhaps this piece would more accurately be titled, “What All Investors/Traders Should Do Right Now…and again tomorrow…and the day after that… and so on and so forth…..”