Home > Boards > Free Zone > User's Groups > lowtrade

OK

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (6) | Next 10 | Previous | Next
lowtrade Member Profile
Member Level 
Followed By 1,618
Posts 19,154
Boards Moderated 1
Alias Born 11/10/04
160x600 placeholder
FTSE Closes Higher Thanks to Oil Stocks' Rise
The FTSE index on Monday closed higher boosted by gains from oil major Royal Dutch Shell, which offset the drop in shares of travel and hospitality companies amid reports that the U.K. government will delay by four weeks the final lifting of Covid-19 restrictions in England. "The FTSE, up 24 points on the day, has managed to hit its highest point since the beginning of the pandemic," said Hugh Shields, financial trader at Spreadex.
Soybean Export Inspections Slide
iTeos Therapeutics Shares Rise 32% on Deal With GlaxoSmithKline
Safran, GE Aviation Plan to Develop New, More 'Sustainable' Jet Engines
Marshall Wace, Citadel Among Funds Shorting GBP1 Billion of UK Stock in Bearish Bonanza -- Financial News
Schwab Month-End May Total Client Assets Up 84%
Fund Traders Reduce Bets on Corn Strength
Amplitude Healthcare Target Jasper Gets Key FDA Designations
Exelixis in Clinical Trial Collaboration with Bristol Myers
Top Company News of the Day
lowtrade Member Level  Monday, 09/29/14 05:18:12 PM
Re: 10thMountain post# 43463
Post # of 47270 
OK

It's time to talk capital preservation.

When NOT selling at a planed expectable loss figure. You can easily become what is known as a bag holder. Your at a 50% loss or more. That's when to conceder a get even plan.

First you have to mentally write off the total value of the trade. Or take the large loss ASAP. Because if your swing trade became a long hold mentally, you already wrote it off in your mind as dead money. Which you will not touch until it corrects to a break even or new expectable loss point, in the far future.

It's dead money!

Now that I have all the mind options out. Let's work on a come back plan. When a stock increases it produces larger gains then the losses on the way down. MATH!

So if you let your total investment sit, you are not increasing your returns, on any reversal. If you run the number and choose a percentage your comfortable with, you can make back what was lost faster. Sell 25% or 50% or 75% Run the numbers and pick a plan.

EX:

$1k in a $1.00 stock for 1000 shares.
The price falls to 50 cents for a 50% loss.

Sell half and hold 500 shares at 50 cents and $250 cash.
Say a reversal comes @ .25, buy back low with the cash taken out, $250.

Now you hold 500 share @ .50 and 1000 @ .25. It runs to .50 and you hold 500 @ .50 down (50% still) and 1000 @ .50 for a $250 double or $500. Your total of $750 if sold. $250 + $500 Is a 25% loss OK? sell all. Many times I'd sell have here.

You don't sell
If it continues up to .75 now you hold 500 @ .75 and 1000 @ .75
for $375 + $750 = $1,125 or a $125 profit.

And the price hasn't event reached you $1.00 break even, if you held from your 50% original loss.

By selling and holding cash to reinvest you can re-coop your loss faster!!! Or reach a new expectable loss figure sooner.

Food for thought.



Welcome to my mind!


Success to all

IHUB http://investorshub.com/boards/board.asp?board_id=3972
http://youtube.com/lowtrade
Incumbents: Fire them all!! VOTE
Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (6) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences