You all know what CYA stands for. Of course,
Cover your assets.
And everyone does it. You have protection against
losing your car in an accident. You've
protection sued out of that car
accident. You have locks on the doors to your home
to protect against theft and personal injury.
Question. Do you have a lock against loss
in your retirement portfolio?
Bet you did not even know there is one. Are you sure
are not going to hear about it from your inventory
broker or financial planner. If there is such a
thing why he told me? Maybe it's because
it is too expensive.
No, there is no charge for this type of protection
and your brokerage company will do. It's free.
Why not brokers and financial planners
offer this as part of their service? The simple
the answer is too much work. If you decide to
use the service they will then need to look at your
account.
Oh, he said he was going to see your account?
Unless your account in seven figures or close
it can not on his radar screen. The
average broker has 300 accounts. You could watch
what is going on in each if you had his job?
It is not possible, so that there is a way to
protect your money. Yes, and it's automatic.
If your shares go up and you are making
money that you do not want to give those profits back
are you doing? Of course not. There is a simple method
known to each broker and financial planner, but
you should insist it is done - or you will transfer
your account to someone who will. Money talks and
He will understand that.
First you have to determine what your risk is.
Are you willing to give back 5, 10, 15% of the
price of your stock when it starts going down? If you
10% say it is every week to tell your broker you want
Open a stop-loss order placed on the extreme
price of each Friday (or Monday, Tuesday,
whatever) as it moves higher and not reduce
that price.
He does not have to look at all
different files you have in your portfolio and
you are protected against large losses. It may
not even want to do this and to post your questions
those orders that you can easily do the
Internet.
Instead of trying to figure out where or when to
Selling your ability to let the price action of your
stock you tell when it is getting weak. There are
many ways of placing stop loss orders and you may
want to use a different method. Many can be found by
typing in the words by using a search on Google
"Stop loss orders". Your library should have books
on the subject.
For a person who is employed or can not
time to follow this market is the best way to
protect your investment. Consider it a lock on
your profits. Go back and see how this would have
worked if you had done.'s for the past 5 years
You would money for.
CYA - covering your assets....
