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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: debby who wrote (42880)	1/30/2001 9:42:34 PM
From: bbgold	Read Replies (1) \| Respond to of 52051

Hey Debby, I am just off of work. Please do not stop using stops <gg>. I am serious! I do not know if you margin any of your positions also but I have been taken to the slaughter a couple of times by not having a stop in place. Once it cost me everything I had at the time. Use them especially when you are going to be away from watching the markets like a day off away from the computer or a vacation where you cannot watch the market or your stock. Do not have blind faith in your stock or the markets. You cannot foresee All of the situations that may arise in the markets or with your stocks performance. You can always look at the stock after the stop has closed and say "Well, should I buy it back or not?". If you have been stopped out because of Bad News then perhaps it would be better to move your money into something that is going up anyways. If you believe that it is just market fluctuations then go ahead and buy it back, most times you can pick the stock back up cheaper than the stop. If you want to make sure that you lock in your gains then use trailing stops, keep moving the stop Up as the stock price moves Up. I would rather be stopped out with a stop that I moved up for a 50% gain than not have a stop and finally give in to a 50% loss. If I have been stopped out and still have a gain I do not care if the stock goes up another 500%. At least I locked in my gain and did not risk my capital on faith. How much free reign you give to your stop is up to you. I usually go with the previous days low if I am cautious. You may want to set it just below your purchase price or wherever you would like to lock in your gain if the stock has moved up. You will most always retain your capital without a loss and you will have the resources available for the Next runner. Remember that BB and Pink stocks are not available to set a stop loss on. If you plan to be away from the markets, as on vacation, my advice would be to just sell your positions and maintain your capital. I went on vacation last May for a month and All of my BB stocks tanked. Please keep using stops and do not learn like I have, The Hard Way. Sincerely, bbgold :^)