Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : You buy a stock. It goes down, now what? -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (20)	7/7/1998 4:47:00 PM
From: The Ox	Read Replies (2) \| Respond to of 112

I use the chart, more then the standard deviation, since the trading volume speaks volumes <g> . My methodology doesn't always work perfectly but I prefer the chart because I have greater control and I can eliminate what I consider unusual circumstances. I was once stopped out of SYMC at the exact low before it ran up 40%. Setting my stop 1/4 or 1/8th lower would have kept me in the stock. I set the stop lower then I ever expected the stock to fall to during normal market gyrations, but I didn't expect INTC to pre-announced earnings shortfalls after I had the stop in place. The market took a one day plunge and took out my stop. Before I even knew what had happened, my stock was sold and the price had gone up 10%. I was using the stop loss in that particular case to protect profits, not prevent an actual loss but the theory is the same, IMO.