OK, guys and gals, it's just great when you buy your favourite stock and it goes up. Then you either hold or sell for a profit.
What I would like to discuss here is strategies for reducing losses when your stock doesn't do what you would like it to do.
Let's discuss the following strategies, their purpose, their positives, negatives and also personal experiences:
1. Stop, stop/limit orders
2. Buying protective puts.
3. Selling covered calls.
4. Holding for the longer term.
5. Doubling down on weakness.
6. Just selling part or all of your position.
7. Other ideas?
Personally, I have used 1,3,4,5 and 6 in different situations with varying degrees of success. I'm looking at starting to use 2 as well.
Please contribute, I'm sure there are lots of stories out there just waiting to be told. |
