I hope you didn't get caught off guard this past Monday with the broad market sell-off.If you did, you need to really think about risk management and having a good investment strategy in place so that you can avoid or minimize the impact of a market correction.
And if you think that stocks will rally, don't be so sure, because the current market climate is tricky and remains highly vulnerable to another correction, which, of course, could be much bigger.You need to get rid of that invincibility feeling that's probably stuck with you during the recent rally.
Success in trading and investing has nothing to do with bravery. Taking a risk to make big gains makes sense and has its place, but after the advance we had, you also need to be prudent and hedge your gains against the highly likely and bigger correction that's still to come.
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