The secret to make money in the stock market is to limit your losses. You can always re-enter a trade again at a later date after the stock has bounced back. You've heard it before. Just like every other trading maxim that has been around forever. If the semiconductor index just rolled over and broke through long term support, we don't recommend going long any semiconductor stocks.
Same thing works on a bigger scale.
If the overall market is heading South, going long may not be your best bet. Major economic reports, FOMC meetings, economic conditions overseas, even military actions can affect how our markets move and react. More specifically, traders need to know what important dates are upcoming for the company they are invested in. We do not recommend holding over an earnings report. Historically, the majority of stocks fall after an earnings report.