SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Robert G. Harrell who wrote (14393)7/9/1999 12:20:00 PM
From: WebDrone  Read Replies (2) of 42804
 
Bob, that sounds about right to me!

Even though natural market forces look like a conspiracy against us, it's only the market forces at work. When a stock is lightly traded, minorly odd things are bound to happen.

If you want downside protection, you buy puts. "Too Expensive!" we say.

So we set stops. There is a risk in setting the stop. I think when you determine a fair price for the risk, you should get something close to the put price! I mean, that's how they are priced, plus or minus a nice commission for the trouble of whoever write it to sell you. IMO.

So, it's my opinion that the dip that takes out your stop is the price to the downside protection.

The more risk you take, the less chance of having the stop broken.

What do you think?

Web
(I've reduced my holdings to a prudent level, and now I'm just going to hold on and see what develops.)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext