Forum Archive Index - May 2000

[jesse <johne777@hotmail.com>]

Nigel,
granted, it's not easy managing stops in local markets, still better to
go to the next best thing than nothing at all. eg daily, weekly risk
management. Fortunately, stocks usually move closer to horizontal than
vertical trends, so you can still reduce risk before you burn. Like AQL,
it didnt go from 20 to 9 in a week. There was plenty of time to get out
for those who wanted to.

Your other point about missing a recovery after stopping out (I hate it
when that happens) is one of the reasons to employ stops, to take the
emotion out of the decision.
Stocks normally fall faster than they rise anyway, so you have time to
get back in as well as limiting damage on the downside.
Enough from me, I'll leave you with this from http://www.about.com

amateurs go broke taking large losses, professionals go broke taking
small profits.
=
cut losses short, ride winners.
j








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