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Topic	Stock Topic 26
Zachnorn 03/25/21 7:53:33 PM #50:	red sox 777 posted... Going back to this, I would suggest not setting stop losses, basically ever. If you think a stock is a good investment at a certain price, why would it be a good sell at a price 7% lower? Unless you think something has changed about the company or the market, the price going down is a reason to buy, not sell. I have two types of stocks in my portfolio: Serious investments (80%), and gambles/memes (20%). My serious investments like QQQ, QQQJ, DIA, DIS, ACI, etc., don't have 7% stop losses. The only one that has reached that level before was QQQ, which I kept and averaged down and plan to hold. The problem is that I gamble and haven't used stop losses. In trying to make about $30 in BYND and not being willing to take a loss, my expected loss (if I were to lose on my bet) of maybe $30 within a month turned into $300 because I kept averaging down. I think I could have faced a $50-80 loss if I did a 7% stop loss. That said, I did use a stop loss today in a gamble/meme stock, and I learned this lesson: red sox 777 posted... With a stop loss, you will likely lose the amount of the stop loss on most trades, and 5-7% itself is not that big, but repeat a few times and it can become quite big. You can lose money even while the stocks you are investing in are flat or even going up, because you are missing out on the gains while eating the losses. I set up a conditional trailing stop limit order such that if GME goes above $150, an order gets sent for a trailing stop of -2% and a limit of $150. I was expecting it to go further than it did, hopefully up to the $161 that I paid, but that didn't happen - it just saved me from larger losses had I given up earlier in the morning. It sold for $150. I could have gotten $185 later on and made money instead of losing $11. That's an $11 lesson, I guess, and I'm going to remove a similar order for closing BYND. red sox 777 posted... Stocks falling 15-25% is normal. Warren Buffett has said (paraphrasing) that if you aren't emotionally able to handle a 50% drop in your stocks, investing probably isn't for you. I'm not sure if I have the opposite problem in that I'm a gambler and found a way to gamble without driving to a casino and have way better odds at the same time. --- <D <cite>Zachnorn posted [p:952116784] in Stock Topi... [t:79367303]...</cite> <quote>red sox 777 posted... </cite> <quote>Going back to this, I would suggest not setting stop losses, basically ever. If you think a stock is a good investment at a certain price, why would it be a good sell at a price 7% lower? Unless you think something has changed about the company or the market, the price going down is a reason to buy, not sell.</quote>I have two types of stocks in my portfolio: Serious investments (80%), and gambles/memes (20%). My serious investments like QQQ, QQQJ, DIA, DIS, ACI, etc., don't have 7% stop losses. The only one that has reached that level before was QQQ, which I kept and averaged down and plan to hold. The problem is that I gamble and haven't used stop losses. In trying to make about $30 in BYND and not being willing to take a loss, my expected loss (if I were to lose on my bet) of maybe $30 within a month turned into $300 because I kept averaging down. I think I could have faced a $50-80 loss if I did a 7% stop loss. That said, I did use a stop loss today in a gamble/meme stock, and I learned this lesson: red sox 777 posted... </cite> <quote>With a stop loss, you will likely lose the amount of the stop loss on most trades, and 5-7% itself is not that big, but repeat a few times and it can become quite big. You can lose money even while the stocks you are investing in are flat or even going up, because you are missing out on the gains while eating the losses.</quote>I set up a conditional trailing stop limit order such that if GME goes above $150, an order gets sent for a trailing stop of -2% and a limit of $150. I was expecting it to go further than it did, hopefully up to the $161 that I paid, but that didn't happen - it just saved me from larger losses had I given up earlier in the morning. It sold for $150. I could have gotten $185 later on and made money instead of losing $11. That's an $11 lesson, I guess, and I'm going to remove a similar order for closing BYND. red sox 777 posted... </cite> <quote>Stocks falling 15-25% is normal. Warren Buffett has said (paraphrasing) that if you aren't emotionally able to handle a 50% drop in your stocks, investing probably isn't for you.</quote>I'm not sure if I have the opposite problem in that I'm a gambler and found a way to gamble without driving to a casino and have way better odds at the same time. --- <D</quote> ... Copied to Clipboard!
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