>Re: Am up 27% on the year ...
>
>Given that the stock is up about 45%+ thus far this year, it
>sounds to me like you ought to give up trying to trade it.
Well, given my aggressive tech. investments outside my 401k,
I tend to be conservative in my 401k, relatively speaking.
So, I keep the money in short-term bonds when it is not in IBM
stock for a trade - which helps when the market tanks - like it did
last fall.
If I get 27% a year with my current approach, I'll have an
8-figure 401k several years before my wife and I plan
to retire. That calc doesn't include the 18% of my salary going
into the 401k each year, 15% from me and 3% from IBM.
IBM won't necessarily go up 45% every 6 months, and my approach
makes money on little 10-15% price swings. My current-yr trades
gave me 12%, then 13%, compounded that's 1.12 * 1.13 = a 26.56% gain.
If the world freaks out about another currency crisis, or Y2K,
I'll buy low in my 401k while I'm possibly sweating bullets w/ my
after-tax investments - I like that balance. I have lots of exposure
to IBM via my salary, I don't need my entire 401k in IBM stock. |
