A retired JPMorgan professional shares a simple rulebook for navigating the stock market.
When the market crashes:
1) Down 10%: Do nothing.
2) Down 20%: Increase your investment by 10%.
3) Down 30%: Add another 20%.
4) Down 40%: Add 30%.
5) Down 50%: Add 50%.
When the market rebounds:
6) Up 10%: Hold your position.
7) Up 20%: Stay invested.
8) Up 30%: Lock in 10% of your profits.
9) Up 40%: Lock in 20% of your profits.
10) Up 50%: Lock in 30% of your profits.
11) Up 60%: Lock in 40% of your profits.
12) Up 100%: Exit completely.
The principle: Don’t panic when the market falls, and don’t get greedy when it rises.
Save this framework for the next market crash or rebound.
🧧——$SOL