First Nickel Inc. FNKLF

nubee

[Triggerman]

Yes, stop loss orders get activated when the share price hits your desired level. They get you out where ever you determine that your downside risk limit has been hit. Most pro traders will place them 10-20% below their entry point. Much better to take a small loss than a huge one , no? Look at FNI for example , lots of guys bought at a buck eighty or higher , now they are stuck or sitting on big percentage losses. Heck , look at nortel , my own father wouldn't use a stop loss as I insisted he use. He bought at $80 , then at $40 and kept telling me ... it's going back to $110 ! He still owns his shares to this day , Nortel dropped under one dollar , then did the big reverse split ... they don't care about retail shareholders on the TSX. His fifty grand is now worth around a thousand bucks...a simple stop loss would have saved him 90%!! Those who don't use them are simply gamblers and they all lose eventualy. Think of it this way... you buy a stock for $5.00 , where you think it's bottomed out. You give yourself a 15% magin for error and if you were wrong on picking the bottom , you take a small loss. Or you let it ride like the guys here who didn't sell at two bucks and you take a quick 40% loss and sit there hoping one day FNI will go back up. Will it? Maybe , maybe not . Depends on how they finance the company and how big the reverse split will be next year. All pro-investors use stop losses , and if they don't , they are sitting there on the trigger and take themselves out if/when they are incorrect. If you buy a $5 stock , you don't put your stop loss at $4.85 or yes , professionals will tick it down and take your shares , but you put it low enough where a regular fluctuation won't stop you out. Or, just gamble ... your choice.