Editing 1course Stock Market (section)

=== Example 2: Avoiding the Downtrend ===
Suppose you’ve identified a downtrend in the retail sector due to declining consumer spending and negative earnings reports from major retailers.

# '''Identify the Trend:''' Retail stocks are in a clear downtrend.
# '''Confirm the Trend:''' Major retail stocks like Macy’s and Kohl’s are trading below their 50-day and 200-day moving averages with declining volume.
# '''Determine Exit Point:''' If you hold retail stocks, consider selling when the price hits a minor rally (temporary price increase) to minimize losses.
# '''Set Stop-Loss Order:''' If you decide to hold, set a stop-loss order at 5% below the current price.
# '''Monitor and Adjust:''' Keep an eye on consumer spending reports and retail earnings. If the downtrend shows signs of reversal, you might consider re-entering the market.