Should Isell all my stocks since th market is tanking?

This is a decision you make "before" you invest. The question you should have asked yourself is this: "How much am I willing to lose before I sell?" It could be a percentage or dollar amount.

If you make this decision beforehand, it is rational, logical, and free of emotions. If you wait until you are losing, it becomes an emotional crisis, based on fear and hope, where the right decision and timing is unlikely.

The best way to manage your risk is to use a Protective Stop, also called a Stop Loss Order. You can also use a Trailing Stop to be more agressive at locking in profits.

There are lots of ways to manage risk, but waiting until the Dow is down 900 pts is not one of them.

At this point, it seems you have reached your choke point. If that is the case, I would set a Stop below the previous Low, and move it up to the next higher Low if the market continues upward. This way, the market tells you when it is time to sell.

For most people, the name of the game is capital preservation. You don't invest when the market gets too risky or too frothy or is nearing a market top or an old market top, or when the market is overpriced, or unstable, and all of these things are true today. There really is a time when cash is King. That 3.5% CD is going to look pretty good when everyone else is cryin' in their beer about losses. Or the market could just go sideways to work off the excesses, but either way, you're safe if you're out. Wanna throw the dice, go to Vegas.

If you wish to research the â€œBuy and Hold Strategyâ€ further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.

only if you want to lose all your money

No NO No No NO. That is the biggest mistake people make. The market is not going into a giant free fall it is just correcting an over abundance of optimism that wasn't really warranted. If you are properly diversified then you should be fine. Remember as someone else already said. You buy securities for long term. You have to look out 5, 10 or 20 years not month to month. As a matter of fact if you have a tendency to lose your lunch every time you look at what is going on. Consider hiring an adviser to manage your portfolio. The they can use their expertise to move your money where it should be and you will be able to resist the urge to sell as soon as things go down. Selling in a down market is a guaranteed way to never make any money. If you have some extra money and you have good reasons that you bought what you own and those reasons haven't changed you should consider buying more.

yes buy high and sell low...that seems to work well....uh NO!!!!

you want to buy low and sell high!!! yes, that is how it works.

Why would you sell to get a tax write off????

You can only write off 15% of the loss(or the capital gains tax)

so, if you lost $1,000 you would only be able to write off $150 and if you are taxed say at the high rate of 39%...that would actually only save $5.85 on the $1,000. Not a very intelligent financial decision...

And Sell if you need the money?...who the f' invest money that they need short term?...NOBODY WITH HALF A BRAIN that's who.

Ok, I'm off my soapbox now.

you should sell if you are desperate for money. you should sell if you need the tax write off this year. don't sell unless you need one or both of these.

The market may be down in the short-term, but historically it goes up over time. Instead of selling at a loss or with lower profits, hang in there until the markets rise again. And if you have extra money available, consider buying more.

(I'm making these statements under the assumption that you are invested in decent stocks).

It's too late now. The market has already gone down. Might as well wait it out now. The time to sell is BEFORE the market tanks.

Think long term. The market fluctuates, but the upward trend over time is unmistakeable.

not all of them, just the ones that you can save

It would be a really stupid move to sell on a downturn in the market. If you have faith in your stocks buy more as they decrease in price. If they are good stocks they will come back up. If you are uncomfortable with that then just leave them alone.

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