“Does cutting losses early also mean selling an index…”

Feedback in:

Hi Michael,

Thank you for your email and books. Does cutting losses early also mean selling an index ETF such as SPY or VOO when there is a drawdown such as the one experienced in April (or countless other episodes)? Or are you referring only to single-stock or sector trades?

Thanks,
Nikolai

Cutting losses inside a trend following system applies to all markets. Cutting losses doesn’t mean new entry signals can’t appear again in that same market.

More from Michael Covel: Books · Podcast · Trend Following course

Filed under Trend Following