charliepark + stocks   11

How do I protect stock market gains?
Unusually helpful advice from the Google Finance message boards:

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Twice this year I've been up 25% only to fall back down to the red. ... So, I've looked at trailing stop strategies and protective puts to hold on to those big gains. How do I play this? How do you protect your gains?

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Set investment goals for your expected annual rate of return. How much do you want (8%, 12%, 25%)?

If your goal is 25% and you make 20%+ in one 3 month trade, why not sell on the upswing? You have 9 more months to make 5%, when you see that stocks are cheap again.

Put annual rates of return in perspective:
8% = The value of your home over time
12% = The S&P 500 over time
25% = Warren Buffet and Peter Lynch

Treat annual returns like your golf game (or bowling, or ... etc.), it's unique to your ability and experience level, as well as the course/day that you're playing on.

Set reasonable goals and then try to improve each year.
investing  stocks 
september 2008 by charliepark
Earning income from stocks | Ask MetaFilter
some good stock advice (I think?) see Mutant's posts
stocks  ml 
october 2005 by charliepark

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