Some compare successful investing with that of a successful boxer, where you have to:
- Avoid the knock outs (avoiding taking silly risks + high doses of leverage)
- Find a way to outlast your opponent (stopping losses)
- Sticking with your strategy
When dealing with the unknown, the idea of stopping losses is ever more important as it helps to keep us in the game for a longer period of time.
When the market is trending downwards, even if you are very skilled at stock picking, its very very hard to outperform. Conversely, if the market is trending upwards, even the amateur with the least amount of knowledge will be able to make some money. So the proper idea is probably to first get the trend right, and then depending on your skill to pick investments, to invest in the market (ETFs such as Tracker Fund HK2800), or pick individual securities.
I guess no one would really take the offer to fight. 🙂 But my guess is most people would continue to buy or sell securities as usual tomorrow and into the future. 🙂
Picture from the below link: