Consider Trailing Stop Losses and Buying NYX
On Tuesday we in the U.S. will have the most important presidential election since November 2008. The media say the race is too close to call, so all I can say is that uncertainty and some angst may accompany the election's approach and its aftermath.
For those of us who own stocks, it's a prudent time to reexamine our exit strategy (you do have an exit strategy, correct?) and the importance of some kind of a trailing stop-loss system that will alert you when it's time to sell.
In September I wrote an article that speaks to the importance of this system as not only a safety net but as a way to make sure we let "our winners run."
In the article I made the following observations:
Usually, I don't like to enter these "trailing stop-loss orders" as standing orders with the brokerage firm where I trade my portfolio. As I wrote in an article yesterday, "When you enter them with your brokerage firm, the market maker may see your willingness to sell at a price below the current price and conveniently match your order up with some big client who is looking to buy at that price..." In other words, I don't want the market makers to see my stop-loss or trailing stop-loss orders."
That's why I like to use a system that the market-makers can't see, like the new version of TradeStops. It's a system that's been around for years and was recently updated with many helpful new features.
In essence, it's a system designed to keep us invested in our best positions while giving us a discipline to exit ones that are not performing as we'd anticipated. With the potential for increasing stock volatility or unexpected news that can cause a stock to plummet or soar in a "New York minute," we need to keep very close tabs on every stock position that we own.
With that said, let me introduce you to a company that is in the business of operating securities (i.e. stock) exchanges: NYSE Euronext (NYX) .At the moment, shares of NYX are "on sale!"
Headquartered in New York City, NYX is an international exchange operator. It owns and runs the New York Stock Exchange (NYSE), NYSE Arca, Inc., and NYSE Amex LLC in the United States.It also operates five European-based exchanges comprised of the Euronext N.V., the Paris, Amsterdam, Brussels, and Lisbon stock exchanges, as well as the NYSE Liffe derivatives markets in London, Paris, Amsterdam, Brussels, and Lisbon.
NYSE Euronext offers an expansive range of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, clearing operations, market data, commercial technology solutions and carbon trading to investors, issuers, financial institutions and market participants.