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[sharechat] Why use a stop loss ?


From: "andrew cottingham" <arco@adinfinitum.co.nz>
Date: Thu, 20 Dec 2001 12:09:40 +1300


This information may be of interest to virgin sharetraders.
 
How tough is it to recover from a losing trade, and get back to where you started?

10% loss .............requires.............11% gain.

20% loss .............requires.............25% gain.

33% loss .............requires.............50% gain.

50% loss .............requires.............100% gain.

90% loss .............requires.............9
00% gain.

Losing trades are a fact of life,  therefore it is absolutely critical that large 
losses be avoided by using a stop loss - ALWAYS !

 
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