VIDEO ON MSN MONEY
This is faulty logic? This is the basis for those of use who beat the market by a small margin,
I can understand if the writer means it's faulty to keep stocks that continue to drop and stubbornly keep them because your research says they're good.
Personally, if a stock falls 25% for normal reasons (no tsunami's, strikes, forest fires near 50% of its restaurants, etc.) below the price at which I bought it, I sell. That keeps me from assuming I'm infallible.
That works most of the time, but one of last ones for which I did that was Citigroup. Back around 2010-11 I stated seven strong reasons why Citi was worth buying. It bought at $45, it fell 25%, so I sold. Now it's $47+. Fortunately, I replaced it with Bank of America and did even better than I would have with Citi.
This is a lame article...............There is much more to it than what is mentioned.
I traded no load no fee mutual funds like stocks for a few years on the dips and improved my returns in the double digits and watched stocks and learned a few ins and outs before investing in them. Now I kept my funds and trade a small portion of my portfolio in stocks to off set the market direction. Individual stock have a much higher loss/return percentage which I always use a trailing stop loss which will be calculated on the volatility of the investment. Reducing loss from a bad investment and locking in gains from a good one. My risk is managed at that point. No matter what its a good Idea to participate in your financial future.......monitor daily and look for the next entry point. Happy trading.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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