Hello Friends! The BEAR is growling and I can feel it gnawing on my portfolio! A few moments ago, my shares of Gen-Probe (GPRO) hit and went past the 8% loss limit and out the shares went. I had purchased 300 shares of GPRO at $41.30 on 5/27/04, and now just sold my 300 at $37.567 for a loss of $(3.733) or (9)%. That puts me down to 20 positions...down 2 in the last 2 days. I will not be purchasing any new positions until I sell a portion of my existing holdings at a gain.
How many positions will I go down to in the worst scenario. I was thinking about this today. Since my goal is 25 positions, and currently am using margin, in the current situation, I would go down to about 12 positions to eliminate margin and to 6 positions to go to 50% cash. Thus, 6 will be the bottom limit. Hopefully, I will not get there! However, if I do, I will replace my positions to maintain a 50% exposure to equities.
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