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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Winfastorlose who wrote (7257)	7/3/2019 1:40:03 PM
From: Kirk ©	Respond to of 27042

Stops are fine for traders who risk a small percentage of their net worth in a trade, especially if they don't go on record with actual performance. For investors.... I'd rather sell some (a fraction of total) when making new highs and if it keeps going up, the remainder will often more than make up for what was sold and give you $ to spend. Stops can be a disaster If there is a huge gap down just to hit your stop then the market reverses. I saw it live when a radio guru in 2000 tried to show he knew how to trade and got his audience into QQQ near the top... he got so many calls he put a stop out and of course the smart people took the market down 10 or 20% to get those stops before reversing it to test the high again. Your mental stop is great if you have the time and discipline to watch the market 24x7 rather than have a life. If ANYONE is good enough of a trader to publish trades and have followers, you can bet bigger money will watch and try to manipulate or front run the followers. Asset allocation is hard to beat.