What All Investors/Traders Should Do Right Now!

  • SumoMe

Boy it doesn’t take long any more does it?  The Dow Jones Industrials Average is down about 7.25% from a peak and suddenly we are staring into the abyss of a 1929 repeat? 1929

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.

Summary

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…..”

Jay Kaeppel

5 thoughts on “What All Investors/Traders Should Do Right Now!

  1. Jay, I just finishd reading your book, “Seasonal Stock Market Trends”. Very interesting analysis which I want to consider in the context of my overall investment plan. One quick question. In your testing were you entering the market at the open of the day, or at the close of the prior day? For example, take the Thanksgiving Holiday trade since Thanksgiving is always on Thursday. Would entry be on the open of the 2nd trading day before the holiday (Tuesday Open), or would entry be on the close of the 3rd trading day before the holiday (Monday MOC)? Thanks.

    1. All results in the book assume you are in the close of the day prior to whatever “favorable” day is under consideration. So for a holiday for example, you would go long at the close on the fourth trading day before the holiday. An example would be going long at the close on the Friday before Thanksgiving. The idea is to capture the entire day of activity, good, bad or otherwise. Jay

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