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Technology Stocks : Walt Disney
DIS 103.29+1.3%Nov 25 3:59 PM EST

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To: freeus who wrote (534)5/3/1998 12:19:00 AM
From: Whiskey  Read Replies (2) of 2222
 
freeus,

There is a difference between a stop loss and a stop limit. On a stop loss your stock may drop way below your stop price before it hits. For example if you set it at $110. with a stop it could go by the stop and sell at $90. before the trade has time to execute. A stop limit sells the stock only at the price you set not above or below. On bad fast days your stops may not execute until you have lost a lot of money. Change your stops as the stock goes up to protect profits but still keep in mind capitol gains. Is the stock going to drop far enough to offset your capitol gains tax you will pay or is it better to ride out the dip and wait till it comes back up. If you have the faith in the stock to buy you should be very careful with the stops.

FWIW,

Whiskey
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