Monday, October 12, 2009

How's Your Volatility Tolerance Index?

Don't be in volatile situations if it curdles your stomach. Stay in Income and G & I. If you were stuck in a volatile holding, it went down 70-80%. (Unless it was a short.) Did you freak-out? If so, you sold it low. You lost double because it's up 100% since March! Some of my volatile stuff is +200% since then. That doesn't mean I'm even yet. Unless I cost-averaged, I'm still way down from where I bought in at the top. But 200% increases get you well eventually. Know your stomach for risk.

Visit my web site here.

No comments:

Post a Comment