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Politics : Formerly About Advanced Micro Devices

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To: RetiredNow who wrote (1041949)12/8/2017 8:24:45 AM
From: Rarebird  Read Replies (1) of 1581699
 
The mistake that most investors make is that they invest based on where they think the market is supposed to be trading rather than what it is actually doing. Granted valuations are in the stratosphere. But that doesn't mean markets can't continue to move contrary to valuations, interest rates, QT, political risks, etc. And it can do this because the market is a reflection of investor sentiment. Eventually, the piper will be paid. But that's where stop loss orders come in handy. The stop loss protects your big gains.

You say you are going to buy when the market falls 10%. But if the market has risen 20%-30% or even much higher before it declines 10%, you will only be buying higher than when you sold.

You could be waiting a long time for your 10% correction or crash so keep up the faith.
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