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URL:  https://boards.fool.com/a-stop-loss-stop-for-any-type-of-trade-long-17377195.aspx

Subject:  Re: Slightly OT: Date:  6/18/2002  8:40 AM
Author:  OhYeah Number:  41868 of 50600

A Stop Loss stop for ANY type of trade - long, short, longterm, shortterm - is a very good idea.

Period.

The person doing the trading decides on what is a maximum acceptable loss. If that maximum acceptable loss unfortunately happens, the position is dumped.

There is no "Well, maybe a little more".

There is no "But but but it's gonna go back again - I know it!".

The position is dumped.

Period.

And all one loses is one's OWN idea of what a maximum acceptable loss is.

No more.

Use Stop Loss stops - observe them unemotionally and mechanically.

Save your money for a later play.

[sure, everyone can say "But with Example X - see! - the price went back and I would have missed out on megabucks!" - too often what isn't said is "Yeah, I decided to extend my stop a little further and a little further and I kept losing more and more"]

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