We are carrying 9 swing trades with 3 put on midway through the 500 point drop in the market. What to do? My absolute rule is to never sell into a panic. Now there may be times when you will be right but more often then not its sucker play.
The only way to trade is to have a very small percentage of your assets for discretionary trading.
What is going to happen on Monday….my take is the likely event will be a gap down which may be substantial. This is anything from clear cut however. G7 , G20, and the Ecb are all talking today to see what needs to be done due to the downgrade. Also I imagine the fed is involved in this also. If a large package comes out later today before the markets open the damage may be minimal.
In any event it should make for an interesting week. I am leaving for Hawaii Tues morning and will keep up with the markets and handicapping while I am away for the week.
Remember if your worrying or losing sleep over what occuring in the markets right now you have way too much in the markets. The key is to trade in an amount where things like this cannot effect you.
RickJ
