hello wave, I think a good trader protects himself at all times, even if its a once in a 7 years or whatever event. That is one of the differences between a professional and an amateur.
good analysis Take a look at a lot of the foreign markets that have already recovered from the feb selloff and are even making new highs
hello michael, you`re probably right and stocks do have a lot to run. but you never know what`s around the corner. a disaster CAN happen that wont be seen on any chart (9/11). its not that I`m afraid, I just want to protect my capital and be prepared for every eventuality that I can think of. Home owners have insurance (are they afraid? no its just common sense) So why not have insurance for my trading capital? After all its my business I`m talking about!
There are much worse disasters that lie around the corner everyday of our lives. In the 1960s, the students in schools would plan for nuclear war just about everyday. They would learn to scramble under desks. Fallout shelters were erected everywhere. Nuclear missile interceptors were parked near large cities like the Nike bases in New Jersey. When you invest in the market or even walk out the door to work, you take a risk and gamble. That is life...
Exactly, your insurance should be built into your risk control plan. Know your what-ifs, and insure against them taking you to the cleaners.
We had disaster drills in the early 80s, too. I remember thinking wtf??? This 1st grade desk that I'm hovering under is not going to do anything if our school is nuked. Is this a sick joke?