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Frank Pembleton

04/25/04 11:10 AM

#9082 RE: Sexton O Blake #9078

sOb ... to determine what your stop-loss should be, I'd have to know what your objectives are, your pain threshold and how closely you follow the markets.

Typically, I tend to stop myself out in the 5-7% range, or better yet, adjust your stop-loss to the level of volatility associated with the stock your playing. Here's a good example of what I'm talking about #msg-2933401 ... I took a position in Agere at $2.95 on April 13 because of the double-bottom at the low end of the trading channel ... my stop was set at 2xATR which at the time was 0.15-- so my total stop was set at $2.65 (2.95-2xATR) but when the stock rolled over, I was concerned it would free fall because stocks tend to do that once they break through their trading channels. I was out with less than a 2% loss, and then the stock proceeded to drop another 12%-- and I reloaded on Friday at $2.53 at what I perceive to be a pivot point (and my stop is set at $2.27).

I watch the markets like a hawk! But you on the other hand do not, so stocks like AQI, which by the way has terrific fundamentals, but lousy technicals (illiquid) are something you put away and let the management build value. Only to sell these things when the fundamentals don't jive with your own objectives.

As for selling now? I figure we'll see a nice bounce because gold stocks are incredibly oversold ... which might be a nice time to lighten up if what you're holding now doesn't fit your objectives in the future.

...as for the stock overlay from Stockcharts-- I agree, I think it's a huge oversight. But from I understand they've rewritten the chart engine and we'll see that feature among other new features very soon.