What should be the selling strategy of a stock for an inactive investor?
Sunday, January 31st, 2010T E asked:
A friend sells his stock whenever the stock drops 7% after purchase or his cost. That strategy saved him a lot in the past year when the market dropped about 50%. However, that also means, he lost all his gains with his stocks when the stock market dropped.
A friend sells his stock whenever the stock drops 7% after purchase or his cost. That strategy saved him a lot in the past year when the market dropped about 50%. However, that also means, he lost all his gains with his stocks when the stock market dropped.
Should he have a strategy to sell after GAINING, say 50%, and then re-buy the stock back, while maintaing the SELLING strategy of 7% of cost?