Forum Archive Index - May 2002

[Jefley Aitken <jefley@xtra.co.nz>]

yo phaedrus
many thanks for the anatomy of your fbu trades.  i'm hoping you wont mind 
answering some stop-loss questions (!).
i bought at a similar time to you at $2.83 and decided that a close below 
$2.63 would be sell time.  this would have limited my loss to >8% (which 
i've seen some pundits recommend) and there had been a brief 
support/resistance at that level.

you write suggesting that your "stoploss was too tight" but find that 
"unsupportable".  Is this because you have a house-rule of limiting losses 
to 3-4%, or did $2.74 strike you as only/obvious "supportable" stop loss?

also, is a clearly defined support-resistance level only valid until the 
next one occurs.  for example, if a chart shows an M-type trace, and there 
are no clear levels on the last uptrend, are levels from the previous up 
and down trends considered useful?  furthermore, does their usefulness 
decay with age, say more than six months?
thanks and kind regards, jefley


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