Discussion in 'ETFs' started by J. Shi, May 17, 2009.
When the Yahoo reports claim that investors have "paired gains", what does that mean exactly?
**Sorry, I meant "pared gains." thanks
I've heard the term used that businesses, investors, etc. have "pared their losses" meaning they are not losing as much money. I've never heard it used the way you quoted it, but I assume "paring your gains" would mean you are not gaining as much. Stosh
If I understand correctly, when you have "pared gains" it is because you have holdings in various sectors, some winning some lossing, but overall your portfolio is ahead. You gain's have been pared by your losses. Pared losses would be the same, scenario but switch it to overall loss.
Another way to "pare" your gains, if for instance in the heavy bear market rally previous to last week, I bought FAS, then sold it, then realized it was still climbing and bought it again, sold it again because I thought it was going to continue dropping but ended up buying it again because it kept going.
In that case I pared my gains, because I cut into my own profits by not riding it the whole way up. The paring of the gains in this case was extra commisions, and missed growth while I skipped some pennies or dollars on the way up.
I don't know if my example is the right use of the colloquil term - "pared gains", but at least it's grammatically correctly.
âverb (used with object), pared, paring.
1. to cut off the outer coating, layer, or part of.
2. to remove (an outer coating, layer, or part) by cutting (often fol. by off or away).
3. to reduce or remove by or as by cutting; diminish or decrease gradually (often fol. by down): to pare down one's expenses.
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