Spaf
02-24-2006, 11:41 PM
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
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