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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Lafayette who wrote (15466)	10/30/2000 8:24:05 PM
From: avanti77	Read Replies (2) \| Respond to of 19374

Hi Irene, You state: Remember to always cut losses at no more than 8%, and NEVER let a gain turn into a loss. Is that 8% from your purchase price or 8% from from its highest point The 8% is from your purchase price, not the high.This advice comes from a much wiser market guru than me, but I've applied it for some years and it works very well. I first read this from William O' Neill, founder of Investor's Business Daily. It's a paper I highly recommend to anyone who considers trading/investing. They have a website now with an answer to that question here: investors.com Further, if I am already underwater by 8% or more, should I bail out now or hold on and wait for the rising tide to lift my boat? Let me just say that I would feel very awkward telling anyone on SI when to buy and sell. I think if you go to the link above, and also look through some other materials at the "learning center," you will come to your own conclusions about the best way to handle that. I can freely admit that before I adopted the 8% (or less) loss as a routine part of my trading, I lost and/or "parked" more of my capital. This book is an easy to digest primer on the market: amazon.com Hope this helps! Donna