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

To: Chris who wrote (85)	7/20/1998 3:29:00 PM
From: P.T.Burnem	Read Replies (1) \| Respond to of 112

with your 1/16 stop loss, dont you get stopped often? with today's mkt shocks happening left to right, sometimes lows penetrate real low. I put my stops 1/16 below the nearest support level. I don't get stopped very often because I use the stop placement strategy in question only in conjunction with buying stocks that (I believe) are an uptrend. Last, but not least, there is nothing wrong with being stopped. It's much better to take a small loss then sit on a big, and growing, one. When a stock that I like hits my stop and bounces back, I may buy it back, or I might buy another stock that I like better. It helps that my broker (Brown) charges me only $5 for market orders. PTB P.S. Every night I check the charts of stocks that I own and, if necessary, move my stops up.