You have a lock on your house. You have a lock on your car. You have a lock on your tool shed. You have an investment ban to protect the stock market?

Maybe you have a safe home for your valuables such as jewelry, coins, documents, stock certificates and also special. Wait a minute. If the security certificate bearing, because it is surrounded by steel with 3 inches? Not really. The problem is that its value does not fluctuate daily. It 'OKas long as it grows, because that's why it was purchased. The broker said it set aside and forget about it.

I hate to say, but in the last three years that you choose for themselves or security in your account at the brokerage firm could be worth your inside, much less. Would not it be nice if you could somehow protect your investment from a big loss? You can, but must pay a premium, but you can set the premiumthemselves.

Some stocks do not need to fear. Do you? You know, good old AT & T. The mother bought years ago and gave it to me if it was $ 55 per share. She did not say how to do and take care for their retirement. Huh? He looked and it's only $ 14.00. Can not be, but it is. Now I do not want an assurance that he had bought some of the equity investments? Bet, do not tell your broker about it. You never do, because you may end up with cash and carryfrom your account, and he would not be able to do some commissions of Nice.

Most people have never heard of insurance stocks. For years and years. Here's how it works. Call your broker and tell him to protect you give an order of this population with a loss, and are willing to pay (a premium of 10% the percentage amount can be more or less), and you want it, for there remain until you cancel. No, you need to check on him. He might be a bit 'surprising at first, until you realize you're talking about open stop loss order. It may indicate that for you. If you had that was to have $ 55 it sells for $ 49.50 and will be in force today at AT & T will sell about $ 3,500 richer for 100 shares. (PS Brokers do not like this and try to talk to you about it.)

You can use these shares are not listed investments to protect against the loss of all your. If we consider that the overall market is about 40%in the last three years, that 10% of premiums seems damn good.

A stop loss order should never be lowered and should always be led to price increases following a stock like them. It's not too late to do so. Call your broker today.

(C) 2005