Kraig Biocraft Laboratories Inc (KBLB)

[ZincFinger]

I would suggest that you think very carefully before using stop losses. They are visible to the brokers and market makers and can be used to lower the price when they wish to.

The problem with them in biotechs is that biotechs are so volitle with many sharp dips. This is hard to see on charts unless you have a decent charting service as most charts covering more than a few days just show the closing prices.

What often happens is that some news is initially misinterpreted or given a significance it does not deserve and then the market realizes that it was all a big flap over nothing. (the very brief dip into the 8's this month is a prime example)

A stop loss is just as likely to cause you to be sold out at the worst possible time (i.e.: during a brief dip) as to save you from greater losses. IMHO it's better to do it live so you can at least attempt to find out what's really going on. (Just set an alert instead of a stop loss. That gives you a chance to notice if it's all much ado about nothing.

A BIG problem with stop losses is where to set the limit. If you set one at the market, that's just asking to get sold out for nothing. And if you set a limit on it, it may not get sold because the price dropped too quickly. (another reason for just setting an alert and doing it live). Stop losses are not nearly as good a safety net as they are made out to be. (If you've been listening to /reading too much Jim Cramer I would very strongly advise you to seek other opinions! Sooner rather than later! Most especially on any stocks he may recommend! (You did watch the video I gave a link to didn't you?)

JMHO.