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Pastimes : Rules We Can Learn From -- Ignore unavailable to you. Want to Upgrade?


To: LTK007 who wrote (74)4/27/1998 10:05:00 PM
From: Dennis J.  Respond to of 109
 
Sell and Winner AND a Loser

Rule: When selling a winner, look for a loser to unload at the same time. It will be easier to clean house this way as you sell a winner, and you will have even more cash to reinvest. And you don't end up with a kennel of dogs.

The textbook rule is 'sell your losers, and let your profits run.' However, this is very hard to do in practice, since most everyone you know will try and get you to do the opposite. Human nature, I guess.



To: LTK007 who wrote (74)4/27/1998 11:10:00 PM
From: Carol  Respond to of 109
 
One way to decrease your risk is to limit the amount of money you could possibly lose in any given venture. This is done in two ways:

1. Only commit a fixed percentage of your total funds to the purchase of any one issue.

2. Cut your losses if you have chosen badly, i.e. set a limit as to how far a stock can drop before you sell.

Courtesy of Carter..........