Q: This is something I would rather discuss rather than post, but thats not doable.
So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.
There is something that really puzzles me, especially given your experience, and know how.
Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.
In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.
In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.
To me that is a very very large opportunity loss.
My question to you guys is this.
Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.
For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.
OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?
Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?
I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.
Food for thought
Sheldon
So here goes. I've been a subscriber almost since your beginnings and more or less understand how you operate and the type of investments you would reccommend in your portfolios.
There is something that really puzzles me, especially given your experience, and know how.
Take SHOP as an example. About 5 months ago it hit a high of $2230. Today it is $595.
In between the highs and the low you have waxed eloquently about the market conditions and risks involved in the Q&A section, almost on a daily basis. You've talked about increasing rates, the aggressive fed, how high value stocks react very poorly to these conditions etc etc.
In the balanced portfolio it was purchased at approx $1200 and so it has gone from a 100% gainer to a 50% loser.
To me that is a very very large opportunity loss.
My question to you guys is this.
Given client sentiment and emotional well being (given people hate to lose more than they enjoy winning) why does 5i not adopt a strategy to prevent this from happening.
For instance, a widely adopted strategy that once a position doubles half is sold to ensure that there are no losses on the position. That would make a lot of people very happy.
OR, I know you resist this, but using LIVE trailing stop loss orders. Imagine if 5i adopted a trailing stop loss order, where there is no emotional involvement, just a limit to how much you allow the stock to retreat before selling it. Imagine if there had been a 20% TSL on SHOP. And you know what, if we are stopped out then 5i can reccomend in one of its monthly updates a repurchase if they deem it ok. How much can you miss out if you are out of a position a month or less?
Most would certainly say darn, we missed a few points, rather than saying darn, what am I going to do now?
I do subscribe to other services that have perfected these techniques and they can work very favorably , especially in horrific markets like we are experiencing now. For most subscribers it can certainly give Peace of Mind.
Food for thought
Sheldon
