The Market Is Crashing

I get up early in the mornings to check the pre-market action, make coffee, and read the news. Things are not looking so good this morning, and I'm anticipating another sell-off when the market opens. Experience has taught me not to call market peaks or bottoms, but it sure looks like a top is in.

Boy, am I thankful that my trend trading rules (see my July 2024 portfolio update) took me out if the market top is indeed in. I got out with a profit and now have spare cash to buy more stocks and ETFs at cheaper prices.

You see, I like to take profit on very short-term plays as they go up. I know the old trading adage that says, "You have to let your winners run," but I prefer the old Uglychart adage that says, "Sell half!"

Why sell half? Simple, it makes you look smart twice. Once if it sells off, you make a profit, and second, if it continues to go up, you still have skin in the game.

So, what do you do when a market top is in and starts crashing? What do you do when your portfolio value is dropping like a rock? You can either panic sell or do nothing and wait for the market to find a low. If you took profit along the way, then you can find some good stocks and ETFs to buy for cheap.

I know I'm making a shopping list right now as I wait for volatility to drop.

It's easy to be a genius when the market goes up, but it never lasts. It always sells off before going higher than before. The only thing is, we don't know when it'll make a new low and when it'll take out the old all-time high.

The only thing you can control is your trading and investing strategy.

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