***OT***
>Keep a tight stop on any long positions you might have, you'll sleep better.
i completely disagree.
how about keeping a long-term, buy and buy, and buy again philosophy on your long positions?
i don't want to get off on a rant here, but imagine practicing tight stop losses in, say MSFT, over the past ten years. you would have bought and sold the stock dozens of times, paying (at that time) stiff commissions along the way and pissing away a lot of liquid in capital gains.
those who bought and held, paid no commissions, are still waiting to pony up to the Man, and have generated extraordinary, compounding returns. had you, instead, traded in and out and paid capital gains each year, your returns would have been dramatically diminished.
not only that, but by cutting losses at say 10%, you are letting the market dictate your investment approach. this will sound cliche, but as an investor, i want to be in the market on my own terms. |
