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To: Elroy who wrote (117840)	2/5/2014 7:56:24 AM
From: bruwin	Respond to of 118717

" ... In other words, if I have 80% of my savings in the market for years and years, and then the market plunges 50%, where do I get the new capital to "double down"? Isn't that perhaps where a Stop Loss strategy could have been of benefit to you ? On the Market's way down to that 50% move you mentioned you could possibly have got out after, say, a 10% or 12% fall and put your capital into interest bearing investments, etc.., etc.. ? One hopes that, even though there had been a fall of 10% or 12% and you had sold, you would still have made a profit up to that point in time based on your original purchase price(s). Once the market started to show a more sustained upward movement you could then move back into stocks. Of course, it may also depend where your savings were placed. Was it with a Fund Manager or was it under your direct control ? If a Fund Manager(F.M.) was in charge then that could possibly prove something of a constraint because a F.M. often invests in very large blocks. If that F.M. wants to get everything out of a particular stock, etc.., then that may take several sells in order to find buyers, and that process, in itself, could bring about a fall in the stock's price as large volumes of shares are offered for sale. As a result F.M.'s tend to remain in a stock longer than an individual might. On the other hand, if the "80%" that you refer to are all under your direct control, then should you decide to activate your Stop Loss strategy, you could rapidly sell your stock holding(s) and the market wouldn't notice a thing ... .... so All would not be lost.