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I'm facing a forced retirement do to current downturn in the economy. I have about $200K in my 401K. Discovered that my 401K plan does provide for a manual or trailing Stop loss for stock investments, but not for Mutual funds.

This handy tool permits me to invest in highly aggressively growing and volatile stocks in my 401K plan and sell the stock at the speed of light when things go the wrong way in milliseconds.

What I do is buy the stock at some value and set my stop loss about 8% below the purchase price, then check on it once a week, and if the price goes up, I readjust the stop loss to the new 8% below the current price again. Thus protecting me from large loses and locking in my gains.

However there are a few gotch-yous, must do this with stocks between $15 to $75 per share and must have an average daily volume of 1.5 million shares traded. Otherwise the stop loss may slip and slide on the price as it attempts to sell.
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