I wanted to write this short post on my favourite subject - the stop loss. A hottley debated subject that I seem to be on the minority side of the argument.

Today I wanted to show in the short space of time how I place stop losses when I first initiate a buy on a stock. On most situations where one of my holdings gain more then around 20 - 30% I always move the stop loss to break even where then I generally leave where it is. On a momentum strategy I may well move the stop up.

This strategy allows the share price to breath more. Todays results were not actually that bad. More often than not the share price moves on Sales and profit figures alone. Balance sheets and even cash flow seemed to be ignored by the markets..until it's too late of course.


I have listed some of my notes in which the calculations are often wrong so take them with a massive pinch of salt.!  So I like to wait for Stock0pedia to update then make a final decision on my course of action.

There were big volumes today and this is a time for traders to do there thing, while giving the medium/longer view more consideration before acting.

On lesson for me here though...  Did I really need to top up 2 trading days before the results? 


For new investors: - Any stop loss is better than no stop loss!


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