Dear Aspiring Investor
To stop, or not to stop.
That is the question.
Whether âtis nobler in the mind to suffer the slings and arrows of outrageous âfortune lossesâ (in the market when the Dow falls by 807 points in a day).
Or to take Arms against a Sea of troubles. And by opposing (with stop limits and other ways to reduce market risk and protect your principle), end them.
Iâm pretty sure thatâs how the 3rd Act soliloquy in Hamlet starts.
#nailedit.
But to be honest, most people slept through that class.
On Thursday, we received a friendly reminder from Mr. Market.
Something many people had forgotten after the previous two-week run that drove tech stocks to the moon.
Stocks can actually go down.
The Dow shed 807 points. The Nasdaq lost nearly 5%.
We hadnât seen any significant selling since early June, so many people were caught completely off guard.
Which brings us to an interesting decision that many investors have to make.
Should they use tools like trailing stops, puts, or other hedging tools to reduce their exposure to down days like yesterday? Or do these tools carry risk as well?
Iâm going to discuss this at greater length.
But first, letâs talk about yesterdayâs downturn.
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Jeff Bishop
P.S. I just released my No. 1 stock pick for September⦠and itâs waiting for you at the Jeff Bishop Portfolio Accelerator. Last monthâs stock shot up by more than 70% shortly after I got in. This next one, I think, can be even BIGGER. [Donât regret missing this invitation.](
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