Page 1149 - How to Make Money in Stocks Trilogy

134 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

Selling Checklist

Defensive Selling: To cut short any losses and protect remaining gains

General Market
■ ✔ Take defensive action when the Market Pulse outlook is “Uptrend
under pressure” or “Market in correction”

By now, I think this point is clear: You must protect yourself when the
market comes under pressure and begins to fall into a correction.
Remember: You do not have to be invested in the market at all
times. Your goal is to make money when the market is trending higher and
protect those profits when it heads south.

How Do You Know When the Market is Running into Trouble?
Check the Market Pulse in The Big Picture column.
We covered this earlier in the section on Big Rock #1 in Chapter 3, so
we’ll just do a quick recap here and focus on what steps you can take to pro-
tect yourself in a weak market.
IBD’s 3-stage approach lets you know if selling pressure is rising, which
could mean the current uptrend is on the verge of falling into a correction.
Think of it like a traffic light that goes from green (“Confirmed uptrend”) to
yellow (“Uptrend under pressure”) to red (“Market in correction”).

© 2013 Investor’s Business Daily, Inc.