DD Support Board and Research Team

[N4longterm]

Not only do they prevent losses, but they also prevent larger gains

I learned that the hard way. My neighbor talked me into putting a stop-loss on my NFLX shares. I had picked them up ~$11 and they were over $50, so I set a 30% limit on them. Within a week there was a quick short pullback that triggered a $40 sell. My first thought was great, I had locked in $30 profit. However within a few weeks it was over $200, and topped out at what around $400?

Ah well, live and learn!