7% Rule To Avoid Stuck In A DownTrend.
@JC888:
After going throughTiger Post’s “Missed a Rally or Caught up in a Down Trend ”, I had a thought over. Apply the concept of “lesser of the two evils”, my ultimate decision is I rather missed a rally than get caught in a down trend. Missing out (to me) implies: Due to “ill timing or whatever reason/s”, no investment has been made before market took off. It also means no monies were lost in the process, albeit no gain also. Personally, I think there is no right or wrong answer to the situational scenario. But is it true that there are only two options available?”? I beg to differ. I researched further on the other option “caught in a down trend” that I did not select. And I found a stop-loss solution article (see below). Gist Of The Post: Sitting on losses is never a good strategy. This is