Red, yellow and green light!
A mentor once reminded me after an investment loss...the market is like getting a green light because over time, the market goes up because businesses grow, so just like driving...we can simply coast along, enjoying the view
Occasionally, we get the amber/yellow caution light where we have to be cautious...
But the most important function of the stoplight is the RED light, as it literally saves lives but making us stop before we venture into dangerous territory.
It was a great story that I have remembered til now. I put in a stop-loss into every trade, based on my valuation or technical chart calculations BEFORE I execute a trade.
Setting a stop-loss allows me to minimize losses and redeploy money out of losers and into winners
But just like in
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