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Technology Stocks : America On-Line: will it survive ...?

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To: LindyBill who wrote (13129)12/26/1998 11:49:00 PM
From: RocketMan  Read Replies (3) of 13594
 
I would be very surprised if you were not stopped out with a 10% stop. Not saying that is a bad strategy, but if you use such a stop, you should use it with the understanding that you really want out at 10% below the close, and are willing to risk it going right back up after being stopped out. I speak from experience, having been stopped out repeatedly on AOL only to see it run right back up and having to buy in higher.

Have you considered put options instead, to cover your downside risk? The problem is that they are very expensive for AOL, due to the volatility.
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