What If a Stock Market Crash Happens- Trend Following?
Had this question posed to me…What if a stock market crash happens…
It all boils down to if you have a plan or do you listen to your stock broker!
If you have a plan…you should have a trailing stop. Depending on your rules and time frame this stop can be tight or more long term….There is nothing perfect. Longer time frames avoid the whips..but also you will give back larger share of profits. Shorter time frames you will get taken out and have more trades…however in lieu of a crash you will exit quickly.
Personally the landscape from all sides is disheartening. Bottom line is have a plan and learn to trend follow.