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Investing into something you're not exposed to

So I am reading Jack Bogle's "Dont' Count On It" (it's quite redundant, but generally useful) and I reached the passage when he commends the strategy of investing into something you're not exposed to, like for a Microsoft employee to avoid tech sector; and someone working for a large cap c...
by sc98007
Tue Jun 04, 2013 8:03 pm
 
Forum: Investing - Theory, News & General
Topic: Investing into something you're not exposed to
Replies: 2
Views: 472

Re: My automatic plan to max gains & min. loss .... is CANC

In fact why make it until 2020, what if I extrapolate this until I am 50 years old, when I plan to start gradually withdrawing from stock market and switching to TIP. That would be in 2033. So plugging the number in excel I came with: 2013 $10,000 2014 $12,000 2015 $14,200 2016 $16,620 2017 $19,282 ...
by sc98007
Sun Apr 28, 2013 7:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to max gains & min. loss .... is CANC

@sc98007 - Since roymeo mentioned he wasn't trying to berate you, I want to preface my reply with the disclaimer that I'm trying to help here, not criticize. Your new plan to slip evenly between total domestic, total int'l, and TIPs sounds reasonable. But some of your thinking seems wrong to me. Do...
by sc98007
Sun Apr 28, 2013 7:05 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to max gains & min. loss .... is CANC

I'm not trying to berate you, but I wonder whether today's AP twitter hack panic would have triggered your (abandoned) formula to sell. roymeo Actually I didn't even know that but after the fact, though I am glad I haven't had it at 2% sell out. Either way, I gave up timing the market. In fact I de...
by sc98007
Wed Apr 24, 2013 6:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

OK I finally came to simulating my scenario with an excel spreadsheet with date from 2003 to 2013 and I want to say that your are right ! In all the scenario I've tried I could not match the market. So silly me ! So here's my new plan, and I will stick with it through think and thin: Use my $10,000 ...
by sc98007
Wed Apr 10, 2013 3:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Put your $10,000 in I-Bonds and be done with it. At least it beats CD Rates. Well I do want to pickup some of the stock winning - like when I hear "Today DOW passed 14,000...today DOW reached a new high.." I want to be part of the action. But I also want to run away when the party is over...
by sc98007
Thu Mar 28, 2013 1:55 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Well it actually happened to me recently. My plan morphed into a simpler idea: buy 10K of SPY (because of its extreme liquidity) and I started with sell-out at 1%, and sure enough the stock lost 1% within the last week and gained it back next day. But it cashed my 10K so I lost about $100. Accordin...
by sc98007
Wed Mar 27, 2013 9:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Well it actually happened to me recently. My plan morphed into a simpler idea: buy 10K of SPY (because of its extreme liquidity) and I started with sell-out at 1%, and sure enough the stock lost 1% within the last week and gained it back next day. But it cashed my 10K so I lost about $100. Accordin...
by sc98007
Wed Mar 27, 2013 9:15 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Big picture - set up your allocation at 70/30 equities/bonds (whatever your preference is). Howvever, what you should be doing is rebalacing that portfolio (buying lower, selling higher). Probably seems counterintuitive to you, but your strategy will (more of the time) sell lower and buy higher sin...
by sc98007
Wed Mar 27, 2013 9:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Do you know which forum you are posting on? Have you read the wiki? I am sorry, isn't Board index ā€¹ Investing - Help with Personal Investments correct forum? Yes; are you familiar with what site the forum is on? Check out the Bogleheads' Investment Philosophy . What you're doing isn't really an inv...
by sc98007
Wed Mar 27, 2013 9:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

If you don't want to take the losses the market gives, just buy more bonds and fewer stocks. If you are worried about bonds losing value, buy shorter bonds or a cash equivalent. Bingo. You need to buy fewer stocks, not more with stop-loss orders. Problem solved. The only reason to buy stocks in you...
by sc98007
Wed Mar 27, 2013 8:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Sounds like a good way to lock in losses. That's generally not what a long-term investor should be trying to do. I actually want to lock gains. So you're holding some asset at price P. You set a stop-loss for P-x. There's a Really Bad Day[1] and the market drops so that P goes down by x triggering ...
by sc98007
Wed Mar 27, 2013 8:42 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Scott S wrote:My "automatic" plan to avoid locking in losses is just to never sell* -- simpler, too. 8-)


*Well, at least until I need to in retirement.


Well most people are by nature risk-averse, and hence holding through thick and thin is not for everyone.
by sc98007
Wed Mar 27, 2013 8:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

If you don't want to take the losses the market gives, just buy more bonds and fewer stocks. If you are worried about bonds losing value, buy shorter bonds or a cash equivalent. Rule of thumb around here is that you should be prepared for your equity funds to lose half of their value. So if you can...
by sc98007
Wed Mar 27, 2013 8:32 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

sjb19 wrote:Not making any comment on your proposed plan, but VTI, VEU, and TIP can all be traded commission-free at ameritrade. FYI.


They don't offer SPY, and I think there is a restriction on when you can sell after buying.
by sc98007
Wed Mar 27, 2013 8:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

I hate to say it, but it doesn't seem like you've really understood the responses. I fear you are setting yourself up for unnecessary losses. If you are hell-bent on pursuing this scheme, I'd encourage you to set aside half of your portfolio and manage it along the lines of one of the recommended l...
by sc98007
Wed Mar 27, 2013 8:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

There are strategies using options to do what you want (instead of stop-loss orders). Look here, and elsewhere, for information on collars: http://www.theoptionsguide.com/the-collar-strategy.aspx Thanks for the link, I'll check it out perhaps invest in some consumer debt notes through Prosper.com F...
by sc98007
Wed Feb 20, 2013 4:35 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Since this is a retirement account I should't worry about tax implications of the short-term gains. And the total transaction fees would constitute $64 a year if no sellouts are triggered, up to the double of that (very unlikely) if sellouts get triggered of all stocks every quarter. $64 a year on ...
by sc98007
Wed Feb 20, 2013 2:22 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

Argument #1: "Stop-loss orders" have been around for, I dunno, at least fifty years, probably a hundred. If they were the magic key to wealth without risk, then why hasn't anyone created an easy-to-use mutual fund that works that way? Argument #2: Can you explain why your system would wor...
by sc98007
Wed Feb 20, 2013 2:12 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

Re: My automatic plan to maximize gains while minimizing los

So sorry about the late replies (I was waiting for a notification email, but apparently it wasn't set as such) Sounds like a good way to lock in losses. That's generally not what a long-term investor should be trying to do. Brian I actually want to lock gains. I'm not sure why you want to hold both ...
by sc98007
Wed Feb 20, 2013 1:42 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

My automatic plan to max gains & min. loss is cancelled

4/10 UPDATE: OK I finally came to simulating my scenario with an excel spreadsheet with date from 2003 to 2013 and I want to say that your are right ! In all the scenario I've tried I could not match the market. So silly me ! So here's my new plan, and I will stick with it through think and thin: Us...
by sc98007
Thu Feb 14, 2013 4:18 am
 
Forum: Investing - Help with Personal Investments
Topic: My automatic plan to max gains & min. loss is cancelled
Replies: 66
Views: 6313

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