Always Have a Plan

by Darrin Donnelly on September 22, 2011

As I write this article, the Dow is down 450 points on a Thursday afternoon.  People on TV are screaming about a double-dip recession.  They’re also saying that Europe’s economy is falling apart and we’re on the verge of a global meltdown.

Wait…now the Dow is down 460.

There’s one thing consuming the investment world today: panic.

It’s times like these when you absolutely MUST follow a predetermined plan.

There’s no one way to successfully invest.  Warren Buffett-style value investors have proven beyond a doubt that long-term value investing works.  Nicolas Darvas-style trend traders have proven that their way works too.

The key is to find the proven investment strategy that fits best with your personal psychological tendencies and lifestyle desires.

But whatever strategy you choose to implement, you have to have a plan for days like today.  Days when the market goes crazy.

For value investors from the Warren Buffett school of thought, a day like today is a trigger to get busy finding great stocks suddenly available at low prices.

For Darvas-based momentum traders, today’s the day you cut your losses and prepare to go short.

You have to have a specific plan for making money in these situations.

The unfortunate truth is that most investors today are sitting in front of their computer screens, watching their stocks fall off a cliff, and reaching for the bottle Tums (or maybe something a little stronger).  They’re hoping for a bounce, they’re praying for a rebound, they’re telling themselves these stocks just can’t go any lower.

They’re panicking.

What they’re NOT doing is taking action.

They’re not implementing a predetermined plan on a day like today because they have no plan for days like these.  Instead, they’ll continue to hope and pray.  They’ll mutter something about how the stock market is rigged and then maybe see what Cramer has to say later this afternoon.

But what they won’t do is implement a winning game plan for taking advantage of days like these.

Don’t be like most investors.  Have a good plan for days like today.

And then, execute it without hesitation.

Having a game plan alleviates all panic and frustration.  It takes a “bad” day like today and turns it into a tremendous opportunity.

Instantly Access Darvas Trader PRO* The Darvas System is a powerful trend-trading method that makes money whether the market is going up or down, and also tells you exactly when you should be sitting on the sidelines.  It provides traders with a straightforward money-making PLAN for any market situation.  You can access my list of current Darvas trades – with EXACT buy points and sell points – by clicking here and instantly downloading Darvas Trader PRO.

{ 0 comments… add one now }

Leave a Comment