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Strategies & Market Trends : Position Trading Forum

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To: Fredman who wrote (6667)11/12/1998 10:43:00 AM
From: ibrandybuck  Read Replies (3) of 7247
 
Fred, stop loss orders frequently guarantee you take a loss on any down turn. I've seen quick downward runs that look like the MMs are simply trying to snap up cheap shares by taking out the stop loss orders - generally followed by an equally quick rebound.

If you're not willing to hold a position long, you need to be available to babysit those positions and to determine first hand whether a downturn is something you should be selling into or not. It's useful to have a mental stop loss point, but dangerous to have an automated mechanism that might simply ensure a loss on an otherwise solid position.
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