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Learning to Invest / Terms, Definitions, & Jargon


Subject:  Re: Trailing Stop Orders Date:  10/15/2007  6:24 PM
Author:  chk999 Number:  1938 of 2244

I've used them in the past, but have stopped doing so.
The reason is that the intraday price jitter is bigger than
you think. So I kept getting stopped out before I really wanted
to. But if you set the trailing percentage too wide, then it doesn't
do you much good when the price really does fall. (The other danger
is if the price gaps down at the open, you may get stopped out but
take a big loss anyways.)

I've come back to the classic view that you should buy if you are
a bull, sell if you are a bear and do nothing if you do not have
a strong opinion.

You could try one on a small position and see if you like how
it behaves.

Chris - long compound growth
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