Charles Schwab Corp (SCHW)

[OldAIMGuy]

Hi C, Re: SCHW and trading around a core position..................

No, I don't use Stop Loss orders on any of my portfolios. Since my average holding time is usually in excess of 4 years there is usually capital gain involved in selling out of a position. So, while I might be stopping the value drop, I usually would be inviting a capital gain event. In the case of the SCHW shares there's about a 45% LT and ST gain overall if I were to sell now. I don't need the tax liability.

Instead I usually average down in share price at intervals. However, the cash reserve isn't a bottomless drawer. My last purchase of SCHW shares was at $49 and that pretty much exhausted the reserves of cash I'd held for that position. To conserve cash I usually only make one consecutive buy in a 30 day time window. That usually helps with Falling Knife Syndrome.

On that latest purchase I'll harvest a LIFO gain if the price rises to around $61.

Best wishes,