High Risk Management

When we talk about the overall market, a certain number of stocks are on "put signals" for a certain period of time. This information is put into a supply-and-demand graph.

When it gets to a certain level, the market is considered to be "high risk." High risk mans the market can still go up if the demand is there, but you must mitigate the risk. You buy on pullbacks, buy half positions, buy ETFs instead of individual stock positions. You buy strong relative-strength stocks, tighten up stop-losses, and get rid of weak stocks in your portfolio. You stay strong in market sectors.

Then, after all of your careful planning and portfolio management, the inevitable happens...