Ten Tricks to Deal with Stock Market Declines

by liaofa on 2009-04-27 10:02:40

I. For a given stock, if its stock price, after falling from a high point, fails to reclaim the 5-day moving average for three consecutive days, it is prudent to exit. II. When a stock's price breaks below the 20-day, 60-day moving averages, or the so-called lifeline of the 120-day and 250-day lines, there is generally still a decline of about 8% to 15%. It would be wise to exit first and then observe.