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| Top Stock Picks Portfolio Comments2012-02-03: We took **** profits in ****. You may want to try for a larger move if you hold this position. Current Stock Portfolio Positions: PR** (+7%), ME** (+7%), AK** (+6%), AS** (+5%), BI** (+4%), EL** (+3%), VP** (+3%), VV** (+1%), JA** (+1%), | Testimonials On Our Stock Picks"Thank you for making this change. Plugging this data into my Telechart and QuoteTracker watch lists will now be much easier. Your site makes the process of stock hunting so much easier. I can't imagine doing this without you. Actually, I can. Trying to find good stocks before using your data used to be difficult, sporadic, and inefficient...Your site is one of the best on the web for filtering through the megapieces of stock information. I appreciate all the work that goes into your work and hope you are very successful helping the rest of us arm wrestle the market."...TS, California | Stock Investing Affiliate Program Refer our stock investing services and earn money! | | | Stop Losses Q&A View Select Entries from Our Mailbag. Also See Our Q&A Page.Q: Greetings. A question. I was away from my trading system for a few days. One of the things I do automatically when I purchase a "top pick" is put in the stop loss based on the stop loss price that you recommend. Fortunately I was only stopped out of EZCH which I repurchased today.
BUT I had another position in AAPL that I picked up at $210 and had a nice run up to $250 and then got stopped out at $199 last week during the "crash", and now of course it’s back up to $245. So the lesson learned is that you guys do a much better job of picking stop loss positions than I do. Do you have any hints in terms of how you set them?
Also…as an aside, it occurs to me that the industry made a FORTUNE on commissions with people getting kicked out and then reentering positions as a result of this. I’m not typically a conspiracy theorist, but if someone fat fingered a single trade that precipitated all this, then it sure made his company a lot of $$. A: Looking at AAPL's chart, no sensible stop-loss would have survived last Thursday's hiccup. So your $199 stop was as good as any.
Only difference is, we didn't have any live stops in place, only mental stops. Sometimes a mental stop helps, other times it hurts - no correct answer. We try not to let intra-day activity shake us out, in general. It would be ideal if our broker would let us activate stops during the last 10 minutes of the day.
We still don't know the full story of what transpired on the 1000 pt drop day - doubt if it was a fat finger. I'm sure we'll know soon.
Good day so far today. << Previous Q&A Next Q&A >>
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