Just throwing this out there for comment really as I was just giving this some more thought today (based on what I kind of usually do) and am just about to finish for the day.

Note - I am the kind of person that likes to take a 20% loss max on any share - I know some like to hold and add if the picture hasn't changed but me, I just think I've got it wrong and get out - The old, you lose 20% on this, you only need 25% on that to make up for it.

I'm not even sure if this is a valid starting point for many but it's one that kind of makes sense to me and is kind of in-line with what I do now (most of the time!!!).

STOP 1 (CONSERVATIVE)

A 5% + Spread Stop below the low of the last 12 months?

The thought being - Just about to invest in something that will perform better than it did in the last 12 months.

So, if it breaches the low made in the last 12 months (by 5% + Spread) it could be considered Mr. Market does not agree.

STOP 2 (AGGRESSIVE)

A 5% + Spread Stop below the low made since the significant high made before the current significant high. This one's not so easy but say we rise to 200, then make a low of 180 and then rise to 220, this would mean a Stop at 171 (180 - 9, assuming no Spread).

The thought being - Just about to invest in something that will perform better than it did in the last 12 months AND in-line or better than my interpretation of the most recent fundamentals.

Sometimes it's really hard to put this stuff into words.

Anyway it's an attempt to put my own approach (used most of the time), into words.

And, maybe prompt some discussion on a subject which is I believe is dear to the hearts of many. And, perhaps, change my view/approach to Stops.

As an aside....

This is actually how I usually calculate my Entry - I usually first work out my Stop based on the above - Add 25% to the Stop and that's my Entry. So, if I take that Entry (when it's 25% above my Stop) I know I…

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