Argh! Why can't I learn to use stops??

[scifos]

So I usually use mental stops, and I keep getting burned because of it. I'd been loaded up on homebuilders (TOL, CTX, and BZH) all doing very well, and I had a mental note to sell if they start to show weakness. Well today TOL announced it forsees a softening in the home market for 06. TOL dropped 12%, CTX and BZH around 5.5% each by the time I checked my port today. I'm going to take this as a lesson and learn to set actual stop orders.

[Gatorman]

Been there, done that

So I usually use mental stops, and I keep getting burned because of it. I'd been loaded up on homebuilders (TOL, CTX, and BZH) all doing very well, and I had a mental note to sell if they start to show weakness. Well today TOL announced it forsees a softening in the home market for 06. TOL dropped 12%, CTX and BZH around 5.5% each by the time I checked my port today. I'm going to take this as a lesson and learn to set actual stop orders.

scifos:
I, too, must plead guilty to not using stops and having overall results limited as a result. My concern had always been a scenario where I would be needlessly stopped out and then fail to profit when the stock went back up quickly. While that may be true in theory, it is not as true in reality. I'm with you, it's time to face reality and set stops on each purchase.

[scifos]

Well, I still made about 6% on CTX and BZH and almost even with TOL. But I gave up about half my winnings by not having stops.

[Gatorman]

That's not bad

Glad you did not give it all back. Maybe both of us can stretch the upside by using strategically placed stops.

[billyjoe]

Scifos,
If it makes you feel any better it took me 30 years longer than you to finally get the stops in place.

billyjoe

[scifos]

Scifos,
If it makes you feel any better it took me 30 years longer than you to finally get the stops in place.

billyjoe

haven't figured out where to put them