Trailing Stops Tested

Written by Dr. Steve Sjuggerud


Trailing Stops - How I Track Them... And How You Should, Too By Dr. Steve Sjuggerud

My two basic rules for consistent investment success are as follows:

1. Buy something of extraordinary value when nobody else wants it. 2. Don't lose money... use trailing stops.

Good investors concentrate their time looking for #1 above. But great investors concentrate on both #1 and #2.

"Don't lose money" sounds flippant. But it is tricky business. A good money manager can't just buy smart... he's got to sell smart too. It is my opinion that most investors - even professionals - don't have a clue when to get out when they get into a position.

Today, I'll show you a simple "worst-case" rule for when to get out - using trailing stops. And then I'll show yourepparttar software that I use to track my trailing stops myself. It's inexpensive, easy to use, very good and free to try. You ought to give it a shot...

Why Use Trailing Stops...

People don't have a plan to get out of an investment. So they risk being stuck in a position where a stock they own is down 50%... and they need it to rise by 100% just to get back to break even. Onlyrepparttar 137545 stock continues to fall...

They may even find themselves in a position where a stock has fallen by 90%. But byrepparttar 137546 time it's down 90%, it has to rise by 900% just to get back to break even. That's asking a lot.

What I mean when I say "don't lose money" is: "Don't put yourself in a position for a catastrophic loss." You can generally avoid being down 50%, or 90%, with a simple strategy I recommend to readers of my newsletter, True Wealth.

The simple strategy is called a trailing stop. As a very rough rule of thumb, I recommend a 25% trailing stop. Here's how trailing stops works:

Credit Cards – What is the “Universal Default Clause”?

Written by Charles Essmeier


Most people who carry major credit cards are well aware thatrepparttar interest rates associated with them tend to be higher than for other types of lending, such as home or auto loans. Anyone who has paid their credit card bill late more than once or twice is also aware that doing so may causerepparttar 137526 interest rate on their card to go up – sometimes by quite a lot. Many credit cards carry interest rates of as much as 20% or 25% annually, and customers who want to avoid interest rates in that range make an effort to pay their bills on time.

What many people do not realize, however, is that up to one third of all credit card issuers now include what is known as a “universal default clause” in their bills. This information, usually disclosed inrepparttar 137527 tiny print onrepparttar 137528 bill that few people bother to read, indicates thatrepparttar 137529 interest rate on your credit card may be increased if you pay bills late to other lenders, even if you pay your credit card bill on time.

This means that paying any bill late that could show up on your credit report, such as an auto payment

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