Comments on Small Gains for this Small Peas Blogger

Go to Small Cap NuggetsAdd a commentGo to Small Gains for this Small Peas Blogger

howdy star4you!

posted by JanesOpinion on October 14, 2006 at 9:05 AM | link to this | reply

hi

posted by star4sky5 on October 13, 2006 at 1:22 PM | link to this | reply

Damon, good points. I have done some stop losses,
but really should utelize them with all my trades.  Thanks for your recommendations/comments.

posted by JanesOpinion on July 7, 2006 at 8:56 PM | link to this | reply

I Would Seriously...
...recommend using stop-loss orders on all your stock investments.

There are two main ways of doing this.

One is to select a level beyond which you want out - let's say a 20% loss. Then you give your broker your stop-loss order (make sure s/he knows it's GTC, or good till cancelled) and that's it.

The downside to this method is it's a bit random.

The other way is to look at the monthly charts  (check out bigcharts.com or Yahoo! Finance) and look for where the support levels are. If you don't know how to read charts, it's all patterns and virtually no maths, and it's a doddle to pick up the basics. Then you place your stop-loss just below a support level - because you know thast if the price breaks through the support, it's going a fair bit lower.

In either case, when your stock moves higher, move your stop up with it (using one of the above two methods) until eventually you'll be locking in a proportion of your profits.

I really believe that trading without stops is very risky - no matter how much cash is at stake!

D

posted by DamonLeigh on July 7, 2006 at 1:27 AM | link to this | reply

that's a good one, Justi.
Amazing how we become attached to some things, eh?  Even losing stocks?

posted by JanesOpinion on July 6, 2006 at 12:38 PM | link to this | reply

Jane's
You sound a lot like me. They are just another group of my children. LOL

posted by Justi on July 6, 2006 at 12:29 AM | link to this | reply