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Re: Toofuzzy post# 10427

Thursday, 11/06/2003 4:10:09 AM

Thursday, November 06, 2003 4:10:09 AM

Post# of 47146
Conrad and TF: the question are stop losses and AIM compatible has a very clear answer: yes and no.

No, because AIM can put downward volatility to very good use.

Yes, because when a position goes too far against you, it might be good to cut your losses.

When traders talk about stop losses, you often hear numbers in the 7%-10% range. It is hard to see how this could possibly combine with AIM. But when you have used up all your cash in a position, the stock may have dropped 33% or so and you might very well have reached stop loss land.

I think an AIM stop loss should be mental and not automatical (OK, let's reconsider this stock. Am I sure I have nothing better to invest my money in?) And an AIM stop loss should be W I D E, and allow for at least a handful of buys.

Regards,

Karel

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