It's insurance....
I'm about to get the bike out and cycle into town - it's only 10 minutes. I reach for the cycle helmet, but hesitate for a minute before putting it on. I hate wearing it, it makes me look stupid, I think. However, I do put it on, it's insurance in case I fall off. Better to look stupid than to actually have brain damage from my head hitting the tarmac.....
It's the same reason why, when my trade falls below the moving average, I exit a trade. Why wouldn't I exit? The whole point is to exit the market if it's falling. It's insurance. I might have to enter again next week, with a loss behind me, but if the market keeps falling, then at least I'm in cash...
There is an example of this in todays video. Go ahead take a look:
2017 10 28 weekly asset class review from Andy Trendfollower on Vimeo.
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See you next week!
It's the same reason why, when my trade falls below the moving average, I exit a trade. Why wouldn't I exit? The whole point is to exit the market if it's falling. It's insurance. I might have to enter again next week, with a loss behind me, but if the market keeps falling, then at least I'm in cash...
There is an example of this in todays video. Go ahead take a look:
2017 10 28 weekly asset class review from Andy Trendfollower on Vimeo.
Like this post? Make sure you are on my mailing list to get my weekly blogposts.
See you next week!
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