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If I have decided to sell, I may put a trailing stop.
But, in general, putting and keeping stop-losses are risky. Anyone remember those flash-crashes that were happening frequently? Then they went away without explanation, just as they appeared out of the blue. Only in the BIG flash-crash, some orders were adjusted, but in the others, stop-loss users were badly whipsawed.
Thanks for the reminder of reality and my own experiences. May be I should get a tattoo for every negative experience!
@yogibearbull, I forgot about those flash crashes. Is that we are in a low vol regime (quick dip buying) or PP really works to prevent flash crashes of indices?
Ya, I've used them a little but found over time just pick a price and put a limit order in. Trailing stops etc... have a way of triggering exactly before a 10% gain. :^)
Comments
But, in general, putting and keeping stop-losses are risky. Anyone remember those flash-crashes that were happening frequently? Then they went away without explanation, just as they appeared out of the blue. Only in the BIG flash-crash, some orders were adjusted, but in the others, stop-loss users were badly whipsawed.
@yogibearbull, I forgot about those flash crashes. Is that we are in a low vol regime (quick dip buying) or PP really works to prevent flash crashes of indices?