Overall not much safety during panic selling like this, and it’s the reason why I don’t believe in holding stocks in a downtrend or bear market. I get pushback all the time about holding cash, but the answer as to why I do is simple.
All I have to do is ask:
Would you rather own stocks because you like owning stocks and lose 25-60% of your money if we enter a bear market?
OR
Would you rather have a ton of cash waiting for you to buy your favorite stocks at a much lower price, earn more dividends, and make bigger returns at some time in the near future?
The post The Harsh Realities Of Caving Into Emotional Trading originally appeared at TheTechnicalTraders.com.