Forum Archive Index - February 2000

["Rini H" <the4rs@ihug.co.nz>]

Hi Peter,

Enjoy your stop loss comment "if you can't afford to lose the money, why be in the market".

According to me there are always 2 ways to look at it, such as in an uptrend market the STOP LOSS is more important to lock in profit.

For example: We have just watched a spectacular increase in ADV today. The cyclical nature of the sharemarket price will retrace again (may be tomorrow?).

The STOP LOSS will help you get out of the market with maximum profit.

 

On the other side I bought ITCOD a while ago at a price which is higher than the ITC price today!!!!!!!!!!!!!!!!!

I regret it that I did not put STOP LOSS for that, not because I can afford to lose the money, but because I've been beaten but the market.

I thought as an investor we are always racing to beat the market. 

 

Cheers,

Rini

---- Original Message -----

From: Peter Robertson

To: sharechat@sharechat.co.nz

Sent: Tuesday, 29 February 2000 15:33

Subject: [sharechat] stop-losses

Was just thinking......all those people baling out of shares, many of them cite that their "stop-loss" has kicked in, so they sell, ...given the cyclical nature of the sharemarket, and obviously we are presently near the bottom (we hope) of a downward wave- we've seen it before... & before too long things will be rising, well, aren't these "stop-losses" a bit nonsensical. Personally, I would rather hang on for the ride, than bale & get depressed. You might say "Oh yeah, but what if you can't afford to lose the money".. but surely if you can't afford to lose the money, why be in the market. To my mind this "STOP-LOSS" mentality could be what is ailing our market.