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How Investors Can Apply the Three Day Rule In a Volatile Market

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Trading stocks can be anxiety inducing, especially when the market is as volatile as it has been. 

Real Money's Stephen "Sarge" Guilfoyle has some investing advice for investors. 

In fact, it's actually a lesson that he learned from Jim Cramer.

"It's really just a simple rule. Maybe Jim Cramer invented it. I don't know. I learned it from him years ago, especially when a stock is dislocated. Even if you're interested in getting into the name, you take a breath. You take a few days, you let it wash out," said Guilfoyle. "And before I started paying close attention to Jim, I actually got pulled over a couple of times by jumping on something that was discounted in my opinion, but really wasn't where it had to go just yet."

Don't quite understand the rule? Don't worry. Guilfoyle has an example of his own. 

Guilfoyle breaks down how he's using the rule on PVH (PVH) - Get Free Report , which reported earnings earlier this week. 

Related. Buy the PVH Dip Here? I Would Suggest Observing the 'Three Day Rule'

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