NZ Herald 18 December 2004
NZ Herald Q&A Column for Saturday, 18 December 2004
Scattering the seeds: By diversifying, you reduce risk but not returns. Also in this issue: From the Mailbox — Some people over-save for retirement.
Stop loss strategy can in fact stop you from winning. A paragraph in a recent article in some of the newspapers that run this column caught my eye. “If you feel a bit more daring, yet want to retain a backstop strategy,” it read, “buy shares and sell them if they drop below 5 per cent of the purchase price. Sell once they increase above 10 per cent of the purchase price.”