Forum Archive Index - May 2000

[jesse <johne777@hotmail.com>]

Hi Nigel,
discipline.....but if the greed gets ya, take some profits off the table
and ride the rest with a stop.

I don't use a set % stop.....you'll stop out to often. Each trade is
different so it has to be flexible. I set stops after looking at the
chart of the stock, price channel, volatility etc. You shouldnt use any
investing tool in isolation...confirm it with other indicators. The more
indicators that point in the same direction the better.

Yes you will miss some gains when you stop out, but so do buy/hold
investors who sit on a loss, waiting for a recovery, missing new
opportunities with their money tied up, sometimes for months or years.

No-one knows direction of stocks, so stops help reduce uncertainty, not
of direction, but of potential loss.

No rules, no limits,  treat each investment individually. Exceptions are
up to you. Keep in mind, any stock has the potential to tank, no
exceptions.

jesse



HI,

  I agree with the 10-15% stop loss or so depending on the stock. Any
suggestions
  as to how to stop waiting for that extra point which doesn't come
before the
  stock tumbles? Surely setting a percentage means that you will miss
some good
  gains?
  Even with all the information out there it is very difficult to
determine what
  will happen. Are you better to set a limit and play by the rule? What
about any
  exceptions?

  Nigel




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