Acting Upon the Trend Signals
As an informed investor, you can decide for yourself how you will act upon the different Trend Signals.
Important here is that you are consistent in how you act upon the signals.
One central aspect of Trend investing and Long-term Market Timing is to take the emotions out of the investing decisions. The signals are objective and results of calculations.
Therefore it is vital for long-term success that you decide beforehand how you will act and that you act accordingly.
At Stock Trend Investing, we follow these rules for our personal investments:
- For the US and Europe, we do not act upon Initial Trend Expectations for individual indices, but only on the MST Overall Trend Expectation for the region.
- After a MATI or Coppock “Buy” signal we start investing in that index or market, but we keep our exposure limit.
- We increase our exposure for a market in steps when both the MATI and MA200/50 give an “Up” signal or when the MTS gives an “Up” signal.
- We sell when the MTS, MATI, MA200/50 or MA250/100 gives a sell signal.
See here our latest Trend Investing and Long-term Market Timing summary for the S&P 500.