Stop Losses are Good and BadI was unduly influened by the poster this morning to Protect Gains.
If you wanted to protect yesterdays gains you could have put a stop loss (protect gain- greed)
this morning at below the open of $ 12.65 at say $ 12.50. As they say a gap up is for selling !
That would be good as you could buy back in the high $ 10's or $ 11's
However if you had set a stop loss (protect losses - fear) at below yesterday low of $ 12.55 at
$ 12.50 as I stupidly did this morning you would lose your shares as it went back to mid $ 11's
That would be bad .
I was saved by ONE CENT as the low was $ 12.51.
Lucky for me I was so relieved that I kept my shares that when I saw it recover back up I actually bought 5,000 more shares at $ 10.65 and I will NEVER use stop losses again unless you want to get out of a position and then set them at the HIGH to get a profit and not a loss.