Thread: Managing your funds

The Kingdom of TSP

Managing your funds: When to hold, when to fold.

Using a IFT and acting quickly when the market turns out of favor can avoid losing a large portion of your principal. When you get out, your funds won't be tied up in a losing position. You will be able to reinvest another day.

It's ok to hold funds as long as the price is advancing. When prices are locked in a trading range or falling, it's time to fold, and get out.

Preserving capital is of the highest priority.

..Protecting your principal is No. 1

..Don't let a large profit turn into a small profit.

..Try not letting a small profit turn into a loss. And,

..Don't let a small loss excalate into a large loss.

The following is the Percentage gain that is required to recover from losses:
A loss of: ||requires a recovery % gain of:
5%...........5.2%
10%.........11.1%
25%.........33.3%
50%.........100%
75%.........300%
100%........Doom

Things to consider in Fundamentals: Markets are more global. Rising energy costs will affect all markets. Stocks can advance from oversold conditions, but they struggle in overbought conditions, and typically have to fall in a correction to gather steam to continue upward.

Things to consider in TSP: The TSP is a saving-for-retirement-fund. At least with minimum investment and matching grants the G-Fund + matching will yield about 10%, with zero risk. The bond and equities funds involve more risk, in these the money needs to be managed.

Rgds, and be careful!... ...Spaf