Once again, the stock dumps big time before earnings. Kick-butt earnings then can simply attempt to come back to some point lower than the experienced high prices for the stock. Could we really be that threatened by AEREO??? I'm glad I locked in 51% profit the other day, as I unloaded 50% of my holdings. I'm still holding on to mucho shares, average cost of $32.47/share. I would come back in at $39, which sadly, just might be possible
I don't understand why don't people use sell stops? You can set the stop at 10-15% below the current price of 46 (CBS) and if bad news comes out and it dips to 39.10/41.40 your automatically sold out. As long as your in at or below the sell stop you cannot lose any money and you can sleep at night. Plus, as a stock moves up you simply move your stop up behind it. Don' t mean to brag but I've done this on CBS all the way up from 15.10. On the other hand if a stock goes down from where you bought it you cannot lose more than the 10 or 15% before you're sold out. If I make a bad stock choice and walk away with 85% of my money, I've learned something and still have 85% of my money left. I hear to many people say a certain stock went down but will come back. It goes down further and they don't feel they can afford to sell and then hope it will come back. It goes down more and they are sick because they've lost 50% or more of their money. Look at APPL. Lots of people got in at 300-500 and then road it up to 700 and back down. What a missed opportunity. I got in at 500ish and when it pulled back from 700 my sell stop kicked in and sold me out at 595. Sure it blipped back up for a day or two but I I made $95 a share and am happy to move on to the next opportunity. It ain't rocket science but you do need to have a plan and stick to it. Sorry if I rambled. Have a nice (and profitable) day.
What you say is true, but my thousands of shares are in the CBS 401K plan, and no stop-loss or other nice options that you have in a brokerage IRA are available to my CBS trades. Now, if I were to rollover my account to a traditional IRA brokerage account, I could take advantage of virtually day trading CBS or any given stocks that I might trade. However, the fixed-income APY in the CBS 401K plan is just south of 3 percent APR. Money market accounts are just north of zero percent. It behooves me to keep my retirement with CBS, as I am require to take a required minimum distribution (RMD) annually. With CBS class B shares, my 401K growth over the last 3 years is 33 percent AFTER DISTRIBUTIONS.