Does not matter. If you have hit the stop you are done. period, because:
1. The chances are that as the stock goes down you could sell and buy back at a lower price if you still want the stock,
2. Big selloffs hapen,, its potential deadliness to your port folio is far too great a risk, get out, back in if you want,, manage the risk.
I have often sold only to buy at a higher price when the sitiuation changes,, GERN is the classic example. I bought at < 7, sold at 9, as the stock slid back to 7, and oscilated, at the end of the day, the stock was strong, bought at 10, sold at 21 the next morning., so I missed $1000, that was the price for managing the risk, and instead of making 13,000 I made 12,000.
The same would be true if the stock slide below where I bought it and sold at a loss.
Do you want to ask your question again ??? ;-) |
