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written by reader Stop Loss? How do you reduce risk during a volatile market?

By ericcinnyc, October 27, 2020

Hi, all! Long time Irrefgular, first time poster. I’ve followed this site and associated forums for quite a number of years to great advantage. I’m usually a buy-and-forget type of investor, holding even when things seem fairly bleak, because I tend to buy companies I believe in for the long run. I don’t usually try to time the market, and except for a few speculative plays here and there, typically don’t take short-term profits.

This market, however, has me worried. I bought into the dip back in March and have done well with those plays, but coming into this election, with the economy still so uncertain I’m looking to add a little bit of a security blanket to an investment portfolio that is heavily stock (and US market) based. I know that Travis has talked about TradeStops in the past, and I wondered if any members here have recommendations that they typically follow for setting stop-loss or stop-limits, either automatically or via notification.

I usually would just let things ride, but a good chunk of my retirement and liquid assets are in the market, and I want to take a more proactive approach to protecting those assets, even if it means losing out on some of what might be longer term gains by missing optimal timing. What do the rest of you do in a volatile market to minimize losses if things suddenly go south?

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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