“Now the question is the same as I asked people in 1999: how will you know when to get out of the market?”
Actually it’s pretty simple if you remove the element of human emotion from it. The best way to remove human emotion/greed/fear from buying/selling is to automate it. So do your research and put stops based on your research. These stops differ from stock to stock and sector to sector, so I cannot give any rule of thumb numbers. No matter what happens, don’t touch these stops once you have put them in place. In most cases, I have been able to ride the rally pretty successfully, up or down. BTW, I have the same question for you Poway. How do you know when to get in the market?
I agree with the general message of cb. Most averga joe investors out there don’t have the amount of time needed to time the markets and don’t have the skill or knowledge to do that either. The safer way then is diversification, risk managemnt and dollar cost averaging for the long run.
