With the near current record low interest rates, term deposits...

With the near current record low interest rates, term deposits and cash management accounts are not worthwhile investing in. This explains why there is so much cash sitting on the sidelines waiting to jump back in during a market correction. These investors simply can't help themselves from jumping back in after any temporary weakness. Note the recent sharp V recovery in the XJO and S&P 500. This is why my trading plan no longer allows shorting the S&P 500 or XJO index. I've been burnt too many times. Sure, I've been in profit for a short time, but the speed that open profits rapidly evaporate is frightening. Never again.

I've also tried having a long portfolio of uptrend stocks, with some BBOZ as a hedge to partially protect my long portfolio. That approach didn't work either. 

The multi-millionaire superstar traders like Daniel Zanger, and Mark Minervini almost always go long stocks in stage 2 uptrends, or wait in cash during bear markets or corrections. Their millions have been made from going long the U.S. equity market with leverage. They don't touch penny stocks. The available data says that historically going long is much more profitable than going short.

It is crucial that I am never emotionally attached to any stock or index. There are not good or bad stocks. There are only stocks that go up or go down. I try to buy stocks going up that are outperforming at least 90 percent of the index.

When the markets correct and go into stage 4 bear market phase, the stocks in my portfolio will be stopped out. I will then wait in cash on the sidelines until the market starts to turn up again. For now, the trend is up, hence I am long.