Dr. Stockstalker

The great thing about market pullbacks is that they create new opportunities for active traders. But before we can focus on finding new stocks to buy, we must be sure that we are properly positioned to weather further downside action should it develop.

The first step during a downtrend is to cut losers quickly and raise cash. If you suffer losses, you are more likely to make it up with stocks other than those that created the losses. Once you have raised cash, make sure you manage it effectively. The biggest mistake people make during downtrends is to deploy precious capital too quickly....535 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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