December 26, 2015
It's a known fact that it's very hard to beat markets. Thus the practical thing that a private investor can do is to ride the market instead of competing with it - buy a pool of investments that represent the whole wide market, and keep to it.
Is it possible to wait out crash periods and re-enter market once it's growing again? Here's a very simple strategy.
See how particular drops in stock price are avoided by this strategy by adjusting parameters in a web-app:
As data shows, selling after 10% drop isn't as profitable as waiting for even more evidence of a recession. But then again, more sensitive drop trigger has psychological advantage - losses don't seem as big at the crisis time.