A recent question from an investor asked if there was a strategy to protect very long-term stock holdings through bear markets or severe corrections. A lot of investors, especially those who prefer buy and hold strategies rarely worry about a drop in their stocks’ value. Almost all of these investors are seeking dividend growth and they also hope for long-term capital appreciation. However there are some who do use a variety of strategies to set up protection levels in their long-term holds for that “just in case” scenario.

This is because investing in stocks is incredibly risky. No one can judge what calamity might befall the economy, a company, global markets, commodities, currencies and so much more. As well many companies do slash dividends when revenue growth enters a period of lengthy and/or sharp declines. All investors have witnessed this type of occurrence if they have invested long enough.

The strategy that some long-term investors use is the Strategy Of Percentages. In this strategy article I outline the strategy of percentages and show how since 1995 an investor who bought Bank of America Stock would have implemented the strategy, protected long-term capital in use  and profited from it. This article is 2200 words in length and will require 9 pages if printed.

The rest of this strategy article is for FullyInformed Members.

Protect Long-Term Stock Stock Holdings Against Severe Downturns

Internal Stock and Option Trades Links

Portfolio Listing by Years

My Principal Stocks Index

Trade Ideas for Members

Trade Alerts for Members

Put Selling Strategies

Put Selling Strategies For Members

Covered Calls Strategies

Covered Calls Strategies For Members

Profit And Income Strategies Index

Stock and Option Strategies For Members

Stock And Option Trades Explained For Members

Ask A Question About A Trade You Are In

Sign My Guestbook

Visit My Shop

Join The Free Options Forum