Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice! As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisors prior to making any investment decisions based on information on this website.
What a day in the market! The Dow closed down 226.47 points at 13,716.95, the NASDAQ was down 50.72 points at 2,639.86, and the S&P closed down 30.53 points at 1,511.04.
And yet my only sale was a small sale of 1/7th of a position that hit an appreciation target.
That doesn't mean that I didn't suffer losses. In fact my Trading Account dropped about $1,600 or so in value.
But the difference is that having exit points allows one to weather the market. It doesn't prevent losses. It prevents panics. In other words, it is imperative to have a working strategy dealing with every single investment that you own if you are to responsibly deal with your portfolio. Of course, this is an amateur's perspective. So take that into consideration.
For me, I know when I shall be selling each and every one of my holdings. If the time comes, they shall be gone.
I know that I shall not be replacing my stocks unless I have an indication to be buying. Ironically, I got that signal today with my sale on "good news". I now have permission to add a new position up to my maximum of 20 holdings.
That's what it is all about.
I am banking on a long-term bias towards upward movement in the overall market. I am a long-term investor as long as stocks move in a reasonably positive direction.
Just a brief comment to let you know that I am here. I am also losing money when stocks decline. I am sitting tight when sitting tight is indicated. And I am prepared to sell when the price dictates that action.
Have a better day trading tomorrow!