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Re: MathProf post# 1238

Thursday, 09/13/2007 9:44:59 PM

Thursday, September 13, 2007 9:44:59 PM

Post# of 2663
People who trade have a host of technical systems to determine sell points. Some of them are extremely simple, some the opposite. All of them depend on the trader being in tune with the market and signal. Good luck with that.

Trailing stops are reassurance against great loss, but not much more. The Math: Invest $90, have it go up $10. Congratulations. How much of your gain would you give back depends on the size of the trailing stop. At 10%, you're out even. At much lower, you probably wouldn't have made the $10 to start with.

My current approach is to buy markets, not individual company equities, and invest, not trade.

I've been wrong before, and I assure you, the next time will not be the last, either. YMMV.

rr

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