You do not have to pull your hair. Stuff happens but you were prepared for it.
Again, these type of days are what stop loss orders are for. These orders are to protect and safeguard your holdings if the market drops suddenly.
Now, on TV you will watch many market analysts advising people to buy and telling them that this drop is just a correction.
What do you think ? Look at the stock charts below for QQQQ, SPY and DIA which represent the stock indices.
All the three are below the 50 days moving average. I would not be comfortable buying at these point. Rather i would short if the stock does a Stock Kiss and tries to move up and kiss the indices. Ofcourse, i would place a stop loss order if my short positions were not succesful and the market zooms higher than the 50 days moving average.
