I'm heading out of town for a few days on vacation. It's been almost six months since my last vacation which, for me, seems like an extremely long time. I can't wait until "vacation" is what I do most of the time, and I have to work as infrequently as I currently rest. Until then, I will make the most of the next few days.
That means I won't have my eyes and ears glued to the market, although I may check in from time to time. With the unpredictable and volatile nature of the recent market, I don't want to risk coming home to find my portfolio in this game wiped out. I don't even want to drop a couple of percentage points, which can make the difference between top-of-the-pile and bottom-of-the-pile in this game. On the other hand, since 3 out of 4 stocks follow the general direction of the market, if yesterday's rally is the start of something - I don't want to miss out on some gains.
So, my "vacationer's strategy": put in sell stop orders for 1% below yesterday's closing price. If one of my holdings drops 1% from Tuesday's closing price, it sells automatically, thus limiting my downside exposure. But, if stocks rally, I get to take advantage of the upside gains. Not a perfect strategy (a stock could drop 1% in the morning and, after I automatically sell it, it gains 2-3% in the afternoon) - but better than crossing my fingers.
See ya Monday.
No comments:
Post a Comment