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Has anyone got any sort of feel how a stop loss order - at say 15% - would affect things ? What sort of swings do BI stocks experience in a given year ? From a cursory look at last year, MO had maybe a 10% down draft and JPM was all over the place. Or would I me "messing with the system" and break it ?

Well, I've tried buying and holding and it doesn't work. Then I read Van K. Tharp's book _Trade Your Way to Financial Freedom_.

http://www.amazon.com/exec/obidos/search-handle-form/002-7682348-0809643

He uses a lot of back testing to prove his point. Money Management is much more important than stock selection. So, BI is just another stock selection method. However, I use money management to protect myself from catastrophic and hard-to-recover losses. It seems to work well for me, but then I'm just providing anecdotal evidence not back tested evidence for BI/Tharp.




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