freeus..ototot..not trying to be cute (cuz i yam)..but, there exists perhaps a fallacy in o'neill 8-10% stop loss strategy, which "was" extremely effective in certain markets and with certain issues...if you apply same to the stocks you always mention, you could get stopped out in a day when the underlying finishes extremely strong...there is too much volatility...you like aol and cmgi +/-10% swings are common...and again how do you know it's the "high"..perhaps only a "near time" point, and you get stopped on a swift, deep, but brief retrace...
how do i know it's the highest close, or highest intraday, until it reverses?....remember once you are stopped in an issue that is fundamentally sound, and is moving with a weak market, you have limited your buy back power by 10%, less whatever reentry price you must pay, exclusive of a round trip commission...and if you enter at a high, you get stopped again..before you know it ya got a lot of tax losses and no portfolio..
buy and hold quality...sell when the fundamental changes..if you are a trader, use stops and also limits on the upside..cheers.. |
