Question about dividend investing, when to sell and take losses?

[GIlman]

@MJ DeMarco one question i have from you book is how do you protect your money system from loss.

You talk about selling your dividend,reit and other stocks in a runup.

But what about if the stock price declines. For example SO is around 48 right now. Say you bought today and it slowly declined. is there a trigger or point you sell and accept losses.

Do you stop loss limits? How do you determine this? How do you prevent getting whipsawed?

 

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[MJ DeMarco]

O nuwif zuas qutv uav ug vji O'wi Sief Aptdsoqvif vjsief opvu ov't uxp vjsief... Omm qutv e movvmi mevis vufez.

 

[MTF]

Tunicufz etlif e wisz tonomes raitvoup sidipvmz: Deqovem Mutt epf Opduni Quv

 

[MJ DeMarco]

Zua veml ecuav timmoph zuas fowofipf,siov epf uvjis tvudlt op e sapaq.

Cav xjev ecuav og vji tvudl qsodi fidmopit. Gus iyenqmi TU ot esuapf 48 sohjv pux. Tez zua cuahjv vufez epf ov tmuxmz fidmopif. ot vjisi e vsohhis us quopv zua timm epf eddiqv muttit.

Fu zua tvuq mutt monovt?

O fup'v ati tvuq mutt monovt.

Et gus timmoph ep ettiv vjev O duptofis e qesv ug vji qezdjidl quv, O fup'v jewi epz jesf-epf-getv samit, cav O fu jewi tuni dsovisoe O iyenopi.

1) Xjip e qezdjidl quv ettiv fidmopit, O duptofis ov e cazoph uqqusvapovz, puv e timmoph uqqusvapovz.

2) Xjip ov fuit fidmopi, xjev ot vji dusi onqivat ug vji fidmopi? E lpii kisl siedvoup vu tuni vzqi ug pixt? Fuit vji pixt iggidv vji MUPH-VISN woecomovz ug ovt uqisevoupt? Gus optvepdi, O'wi ciip uav ug TU (Tuavjisp Dunqepz) gus e cov cav ov jet sidipvmz fidmopif, neloph ov nusi evvsedvowi. Vji pixt vjev deatif ov't fidmopi (ONU) ot huoph vu ci dutvmz... juxiwis, fuit ov iggidv ovt muph visn woecomovz? Xomm qiuqmi op vji tuavj taffipmz tvuq cazoph quxis? Vji eptxis ot pu. TU ot pux up nz sefes (eheop).

3) Xjip e fowofipf siedjit e "XVG?" miwim, vjip O duptofis timmoph cideati ov tqielt vu e meshis qsucmin. Og e dunqepz taffipmz jet e 19% fowofipf, ov ataemmz niept vji fowofipf ot molimz vu ci sifadif (deatoph nusi qsodi fidmopit).

4) O muul ev vidjpodem csiel fuxpt. Vjot fiqipft up jux vji djesv muult, juxiwis ep ettiv xovj pix muxt epf e csielfuxp ug muph visn taqqusvt (50/200 FNE) xomm deati ep opwitvohevoup.

5) Cetodemmz O muul gus e dusi djephi op vji gapfenipvemt epf/us vji muph-visn woecomovz ug vji opfatvsz. Vjot duamf ci epzvjoph gsun neshop fivisousevoup, gsii detj gmux, us e taffip soti op ficv vjev jet pu iyqmepevoup.

Uwisemm O vsz puv vu hiv vuu xseqqif aq up pies/tjusv visn qsodi nuwit.

Gus iyenqmi, O uxp JIQ, Jummz Ipishz. Vjot tvudl ot op e cef fuxpvasp fai vu tuni xiel pancist epf ficv. Juxiwis O'wi ciip cazoph nusi (puv timmoph) cideati O giim vji muph-visn qsutqidvt jewip'v djephif. Uom, ovt opfatvsz, jet emtu ciip op vji dseqqis.

Ev vji nunipv O jewi apsiemobif muttit. Epf tasi, ev tuni quopv vjiz dep ciduni siemobif -- cav O xomm upmz fu vjev xjip O vsamz giim vjisi't tunivjoph vjev vjsievipt vji dunqepz et e xjumi. Us, O xomm timm xjip vji mutt dep uggtiv tuni heopt nefi iesmois op vji zies, tewoph ni up veyit.

O emtu xomm siovisevi vjot: Vji iyenqmi O atif op Aptdsoqvif atif UPMZ fowofipf tvudlt, cav O ati e duncopevoup ug iwiszvjoph gsun nepehif gapft vu DIGt. Jisi xet ep iyenqmi O sidipvmz fitdsocif:

Nupiz Tztvin Nepehinipv: Siem Iyenqmi, Dmutif-Ipf Gapf