Today, we go evergreen with an important investing tactic to save you a lot of money and keep you investing for a lifetime.
If Bitcoin taught us anything, it’s that a good stop prevents a lot of sorrow and big losses.
We discuss an important rule to follow and a few other useful insights to help your trading.
In this video:
• How to use stops when investing
• The 1–2% portfolio risk rule
• Position sizing explained simply
• How pros manage risk in volatile markets
Protect your downside. Grow your upside. See video below.
Note that this is different than our other YouTube channel featuring the Economic Modern Family.
That is for financial literacy. Mish’s Daily of Mish’s Market Minute on the MarketGauge YouTube channel under “shorts” is meant for the more serious self-directed investor.
They do, however, overlap.
Before you place any trade, you should know exactly how much you’re willing to lose.
In this Market Minute, learn why professional investors always use stops, how the 1–2% risk rule works, and how to protect your portfolio from one bad trade turning into a major loss. Whether markets are volatile or trending, managing risk is what keeps you in the game.
Smart investing isn’t about being right every time — it’s about protecting capital so you can keep investing.
Stock Market ETFs Trading Levels and Summary:
(Pivotal means short-term bullish above that level and bearish below)
S&P 500 (SPY) Can we get a second close above the 50-DMA 686?
Russell 2000 (IWM) 267 is now the place to clear
Dow (DIA) Made a new high and Dow over 50,000
Nasdaq (QQQ) Held 600 but still must do a lot more to get back in the game
Regional banks (KRE) Another new multiyear high-sniffs lower rates
Semiconductors (SMH) Did the job and now back over 402 should continue
Transportation (IYT) Never become bearish when transports are flying to new highs
Biotechnology (IBB) Good consolidation probably means higher in store if holds 170
Retail (XRT) We need 91.25 to clear, and watch 88 to hold
Bitcoin (BTCUSD) 58k is the 200 week moving average so no surprise that held. Now, it needs follow through with a move and a close over 72k
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
