Jul. 29 at 4:39 PM
$SPX $SPY $QQQ $IWM
"Investments Are Not Worth Losing Sleep Over - How NOT to Lose Sleep!"
$YSS is just one of many examples. It's trading on pure chart technicals today with a push perhaps from a Raymond James downgrade. At the open is was -4.2% and now it's -15.4%. It broke a key technical level and continued to crash. Removing exposure sooner on these breakdowns may help you protect your capital.
You can always rebuy a stock...
Making back a 50% loss means you have to have a 100% gain, which can come very slowly if at all for certain stocks.
Remember that the NASDAQ, the index not a crazy volatile individual stock, was down 78% in the 2000 - 2003 crash. In the Great Recession of 2008-2009, SPX was down over 50%.
It's very important not to give back huge gains, so do things like take off 100% of your principle after a 100% to 200% gain in an individual stock or volatile ETF. Then take off more if it goes down 25%, even more if it breaks 50%, to preserve profit.
Decide what profit you want to preserve in advance...
In one stock recently in the space arena I took off 196% profits on half the position and yesterday when it slid over 10% I took off 1/3 of the remaining position, and it's down another 13% today. Just one example of the recent crazed trading patterns of numerous stocks.
Where some of these stocks will stop in their dives, no one knows...
Buying dips in crashes can be dangerous to your wealth. When volatility goes up abruptly, it's often wise to act quickly, and sell a chunk or all of a position, as you've seen me repeatedly do to preserve gains. You can sell in steps as I did with my trading gold position or all at once...
If you know something about a company and decide to just hold it during a steep decline, fine, but be willing to accept the associated results without losing sleep.
Investments are not worth losing sleep over or being depressed over for that matter, so if you are in that camp this round, learn from both your gains and your losses, and find a better balance for the next round so you can enjoy your life and sleep soundly... ;)
