Rob, I also call it a "mental stop loss", with the current trading on the NAZ you would be eaten for lunch if you actually "show" your stop loss, by gosh they'll take you out during after hours even if you are three bucks away. The only way to do that (anf\d it bear some risk) is to determine your point of pain and sell immediately after that. Often, I look at the closing prices rather than an intraday fling, because of market manipulations. Sometimes, when real critical level is in questions, I'll get out when that stop is being approached rather than wait (if you can determine for yourself the "inevitability" of the crossing of your point, you might as well save half a buck or so per share. The most important thing, however, is to forget that prayer "it will come back", or the most common prayer "Almighty, if it just climb back to my buying point, I promise...".
Last, if you are going to use stop losses and it turn out you misjudged the situation (happens to me in about one of three to four trades), don't be shy to recognize your falability and by all means, jump back in. Right now, I am a buyer of CYMI either on a retest of the low $40' or a breakout above $52. In the former case, my (mental) stop loss would be $39.5, in the latter ($49).
As of the close today, I am 70% cash but expect to redeploy over the next week in bargain situations, since I still see a rebound of the NAZ to the 4390 to 4560 area.
Good luck.
Zeev |
