Good Morning boys and girls!

[john_1]

Should be another boring day on the markets with, the US closed for Labour day yesterday, so we will actually have to think for ourselves instead of being dragged about by the yanks. Lets Hope the forum is able to provide a little inspired conversation for a change.

[Preston]

Morning John

[john_1]

I guess the inspired conversation will have to wait!

[steve_1]

Morning John, beautiful day...if that does'nt inspire you...

[john_1]

Dude I'm inspired, motivated and involved...

[Preston]

Someone is in a touchy mood

[john_1]

Touchy, feely mood, pitty I am alone.

[CHATTYCHAT]

My I add to the boredom by adding a question that slipped to attract response yesterday?- maybe will now stimulate some thoughts?- it concerns a stop loss strategy. I know that 10% stop loss is indicative, but very much in use allover. My portfolio is negative 7,9% at present and with the full loss value of TIW is actually negative 15,2%, which is higher than the 10% mark. Of course I have green leaves but some red arrows dragged me down. I also appreciate that the portfolio as a whole as well as individual shares must be reviewed regularly. I had a med-long term 'investors' strategy, but looking at the forum comments with regards to doomsday I have the feeling that a stop loss for the portfolio as a whole should be in order. THUS I consider selling and will remain in cash for some time, taking maybe oppurtunities with the odd new listing and so on. Somebody care to comment? And if you please, I certainly hope not to be met with dead silence, I feel stupid as it stands already.

[Brazen]

Hi C - as far as I'm concerned any doomsday scenario talked here is short term. I'm in a lot of cash only in my SEQ account which is short term trading only. If you are looking at long term try not to be influenced by short term negativity. I have money in the market that I never touch at all, some shares I've had for 12 years without doing anything ever. Time frame is everything and noise can result in decisions you really, really regret 5 years from now. Dunno what shares you are in, but if they are blue chip divi payers why sell?

[john_1]

Chatty, first a stop loss is NB. second cut losers not winners so set your stops against each individual share, not against the whole portfolio. Second point is the size of the stop is dependent on TA, volitliity of the share, etc. my thinking is that the stop should be half the size of your target gains... so if you are likly to take profits at 10% then stop at 5% max,if you take profits at 50% gain then the stop should be at 25% max. that way you try always make sure your winners are larger than losers.

[Brazen]

Pls tell me you bought JBL yesterday morning after you mentioned them. Up about 14% since then. My loss has halved - LOL!

[john_1]

What and take my own advice.. are you kidding me.. if I did that I would be worth millions by now..

[#13]

could be an interesting day for the US markets today. a bit of data due out from the them including Manufacturing activity, construction spending and auto sales...

[CHATTYCHAT]

Thank you - will digest. I also wouldn't like to sell the winners, but at present they help to feel better about the losers, although the latter pulls everything down as time goes on. Thx again.

[CHATTYCHAT]

Thank you - this is good advice and helps to clear some dirty matter from the decision board.

[john_1]

What are you holding in your portfolio.

[CHATTYCHAT]

Thx for interest. Sorry, I'm slow to answer. Positives SOL,MLA,RBX,SFB; negatives NTC,SIM,AGI,NED,TIW. I have bought and sold 1TM,SAN and a few RBX. May I add that I am not playing hundreds of thousands, can't even say that my presence here is justifiable. Today has been good for me, since initial post yesterday %'s improved, nett neg 6,7% TIW makes it 14,04% - that's why I was thinking to cut it all and sit on the bench before tomorrow's pullback.

[Brazen]

Why do you expect a big pull back tomorrow? And your shares look fine, NTC, SOL, NED, MLA excellent long term holds. A few high risk one such as SIM are OK just so long as your percentage exposure is small. And sh*t like TIW happens in the market, a lot of smart people were burned with that. That's where a 20% stop loss would have been useful. Pesonally, I think 10% is too tight for a long term portfolio.

[saash]

So far, if I've not been happy with the performance of a share or my portfolio - either its been down too long, or loss is too high, or too high for too long - I'd rather cut loosing shares for a small loss, then I can trade the capital that was tied up in that looser to make some other gains. I'm strict with myself on reasons for holding shares. If its for dividend, I don't mind if its down for a while, and if its for long investment then I'd rather buy more while its down (solid faithfuls only). OMO.

[CHATTYCHAT]

Thanks ms B and saash (later on) for your views. O K, so, given my strategy, the idea is not to regard the portfolio as equivalent to 1 share and apply the stop loss on the whole. As for the pull back (tongue-in-cheek) gloom, let's wait and see, but I agree there are some positives in the market which may be sustaining the upward trend.