MDM (Market Direction Model): PS

Published : October 7 2010 at 9:48 ET

PS: Remember, just because the model remains on a buy for now does NOT mean your selling behavior changes. Always set your stops at logical points that is conducive to your trading style and your risk tolerance levels, and always sell a stock if it moves below your maximum percentage loss limit which, for most investors, is around 8%. Let your stocks tell you when to sell them, regardless of the model's signal. Likewise, let your stocks tell you when to buy them, regardless of the model's signal.

The signals issued by the timing model are mainly for profiting via ETFs. The signals also help confirm the action of the leading stocks. In essence, when it comes to stock selection, we let the stocks tell us what to do. When it comes to ETF selection, we let the timing model tell us what to do.


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