Apple Inc (AAPL)

[roni]

appplecider: Also seems to me that the stops, while imposing some discipline, also ensure that you sell at a lower price.

That is so. I did sell some at over 80 and at around 75. Part of using a stop loss is, well to sell the stock at a pre-determined price - kinda of a this far and no farther statement. Still holding some, and even with the losses today our combined IRAs hit another all time high today.

A stop loss does not ensure you sell at a lower price unless the lower price gets hit. The biggest lesson I have learned since 1998, when I started managing our investments, is that the avoidance of big losses may be the key to consistently above the indices returns. Stop loss orders are a part of that risk management strategy.

You are not going to be right all the time, even when you have done a good job of stock-picking, your timing will sometimes be off. Stop-loss orders can save you money.