The secret wall street does not want you to know about. My friends have lost 50 % of their nestegg in months. or weeks. some with Bear Sterns and AIG lost 90 or 100 %. The ONLY method to protect yourself in any crazy market is to use married or put protection. Its the same as home insurance in case there is a fire. But pot at 200 and buy a married put for 15 dollars and no worries. Goes up you covered the cost and if down you are totally protected . Usual cost is 5 % per share for 6 weeks .
But over time, what will you make? Likely not much and therefore a waste of time. Tried it already. The really wealthy sit on CD's and T-Bills. Very rarely get involved in stocks unless it's start up or venture capital. That way they lose a little in relation to the potential gain which is monsterous comparitavely.
pot was at 120 and moved up to 150 and 175 and 200 and 250 in months not years. If were lucky to buy at 120 and now looking at 200 plus I would take some of that great profit and pay 5% for a put to protect the profits. How long you hold the stock and buy more puts is up to you but you locked in your profits except for the cost of the puts.