I would really welcome views on above please. I work to a similar selection process to Ed and until now have always operated a fairly strict stop loss of 20% however 2 shares in my portfolio are approaching this level, one of which is Griffin Mining who still rank as one of the highest and thus tempted to give this a little more time.
Any input please when shares that are still highly ranked hit a certain amount of drawdown that would normally trigger a stop loss?
It's a tricky one and one that I'm also wrestling with. For me it comes down to whether you are an investor or a trader. A trader would say sell as it's lost momentum and a 20% stop is perhaps even a little generous. An investor would say that if you believe in the company and that there has been no bad news then you are holding for the long term and should continue to do so.
From a quick look at the chart it looks like Griffin Mining is approaching it's support level so I would make sure you don't have a stop above 120 otherwise you could miss out on a rebound if the momentum shifts. The recent rapid rise in the SP may mean that there is profit taking and when the SP returns to its support then others will pile in as they missed out last time.
