The are two Main Keys to Successful Trading or Speculation or Investing.
1. By trading in the "Direction of the Trend", and
2. By using a "Logical Stop-Loss Strategy".
If the trend is UP (Bull market) we want to be buying every decline or pullbacks, and when the trend is DOWN (Bear Market) we want to be selling rallies or pullbacks.
The questions that needs to be answered are:
1. What is an up/down "Trend"?, and
2. What is a "Logical Stop-Loss Strategy" once we are already in a trade?
The answer to the above 2 questions is the Key to Successful Trading, Investing or Speculation.
Here is a chart example, just for illustration purposes, of how to manage a trade in a downtrend (bear market) once we are in it
Note: Once the market makes a new Lower-Low, stop-loss can then be moved down to just above the last pullback high.
