Green Investments has weathered some pretty bizarre markets thus far. It so happens that I launched this blog toward the end of a very long bull market.
Since last Christmas, this bull has slowly gone into what I believe are its death throws. Soon it will be replaced by something different. A long period of up-and-down volatility followed by a year or two of slow times.
This is where our approach to the markets will get a real test. Anyone can be a stock-picking genius in a broad bull market.
So how do you survive and thrive through a bear?
How Do We Survive This Crazy Volatility?
Use trailing stops and stick to your discipline.
In that interest, we're placing a 25% trailing stop beneath our KEPCO (KEP) position. That means we'll sell if the position closes 25% (or more) below the highest closing price since recommendation.
We added KEP to the portfolio at $22.66 and it has drifted down a bit since then. So our trailing stop will be $16.99 to start.
That means if the stock continues down and closes below $16.99, we'll sell on the next day's open.
Friday, November 2, 2007
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