Seeking to Protect the King "Capital"- How? | Trading Growth & Value Stocks | 5-21-25

About this Video

• Video Title: Seeking to Protect the King "Capital"- How? | Trading Growth & Value Stocks | 5-21-25
• Channel: Trader Talks: Schwab Coaching Webcasts
• Speakers: James Boyd, Michael Fairbourn, Grace H. (BJGH), Bill Barnhoff (Double B), Sharon X., Kevin, Josh Pink
• Duration: 00:47:11

Introduction

This video is a Schwab Coaching Webcast focusing on selling strategies for growth and value stocks. The presenters discuss identifying sell signals, using tools like the VIX, and managing a portfolio to protect capital. They emphasize the importance of recognizing and executing sell signals, even if it means taking smaller profits or losses to avoid larger potential future losses.

Key Takeaways

• The VIX as a market indicator: The VIX is presented as a key indicator similar to a windsock at an airport, showing market volatility and potential direction. Rising VIX suggests increased volatility and potential selling pressure.
• Sell signal criteria: Several criteria are highlighted for identifying sell signals: the 10-day moving average turning red, stocks falling below trend four or five (defined by their relationship to moving averages and resistance levels), and proximity to stop-loss levels (8-day low, 10-day low).
• Protecting capital: The primary goal is capital preservation. The presenters advise selling stocks when they fall below the 10-day moving average to mitigate risk, even at a small profit or loss.
• Categorizing stocks: Organizing stocks into folders based on trading strategy simplifies analysis and decision-making.
• Bearish positions: The presenters advocate for including bearish positions (e.g., short selling) in a portfolio as a hedging strategy against market downturns, offering an alternative to simply holding gold.