The Unhappy Anniversary

All the other media outlets are making a big deal out of this anniversary so I feel I should mention it, but in a different light. The resounding question being asked is if we could endure a failure like we witnessed on this date in 1987. I can't imagine the pain that that crash caused. I do know the pain feel from "little" dips, pullbacks, etc. As a swing trade/investor these one day to a few day events hurt. What I would like to address in light of the market crash talk is planning. As a professional money manager the most important decision I make is when to take a position off the table. The actual position is not near as important as the management of that position. Before I decide to add any position, I make my goals very clear. I want to know the level at which my position no longer gives me a favorable risk/reward outcome. That level can be after a position makes a great run in a short time or it can be after a position pulls back to a level that the odds no longer favor a continued move higher. The main point for me is to know typical action of each position and come up with a strategy for any direction it takes. I do this from a technical perspective (support, resistance, average true range, dollar loss, percent gain, etc). Each position is different and requires a strategy unique to itself.