Buy low and sell high. Boy, that sounds easy, doesn’t it? But if you’ve tried it, you know that it can be next to impossible to accurately do 100% of the time—and it really can’t be done without a whole lot of stress.
Wouldn’t it be great if instead you could somehow see when a trend might be coming or going? That way, if an uptrend developed, you’d know you had the green light to allocate assets. On the other hand, if a trend turned negative, you could avoid potential serious losses by selling early in the downswing.
Good news! It’s possible. You can use moving averages—particularly the 200-day moving average—to monitor trends and make wise investment decisions. I’ve been using this strategy for years without ...