Stop Loss Prices
The market is raging. I mentioned earlier in the week that 16% for th eyear was possible, and Friday's run up made me think that I might not have been aggressive enough.
I think the market has seriously forgotten that rate hikes will happen. I want to keep tight, tight stops. As follows
ET: $23.6
GHL: $61
GRP: $48 (GRP likes to move in cycles http://finance.yahoo.com/q/bc?t=6m&l=on&z=m&q=b&p=&a=&c=&s=grp)
JLG $25
JOYG: $60
MDR: $62
NTRI: $64
STX: $24
TEVA: $37.7
TIE: $72 (tighter than normal)
TRID: No stop
I think the market has seriously forgotten that rate hikes will happen. I want to keep tight, tight stops. As follows
ET: $23.6
GHL: $61
GRP: $48 (GRP likes to move in cycles http://finance.yahoo.com/q/bc?t=6m&l=on&z=m&q=b&p=&a=&c=&s=grp)
JLG $25
JOYG: $60
MDR: $62
NTRI: $64
STX: $24
TEVA: $37.7
TIE: $72 (tighter than normal)
TRID: No stop
posted by Andrew at
11:57 AM
2 Comments:
Why no stops on TRID? Do you expect severe swings?
For that matter, what is your stop philosopy?
My STOP philosophy is to ensure that I am not stopped out on market swings (aka false stops) but that I am stopped out when company-specific events occur. For example, earnings misses or lawsuits or such. I want to hold stocks as long as possible.
This hasn't always worked - false stops occurred a few weeks back when China announced that they were going to slow spending.
ALternatively, GHL stopped out after they announced shares for sale.
When these stops occur, I evaluate the news and decide if this is panic selling or real. GHL, for example, I decided was panic selling and we got back in. It has since moved up 15%, and we were able to get back in under our stop price, adding to that gain.
TRID has no stop because I think it could ease a bit but I don't want to sell. This is like NTRI - the numbers make sense and I think that patience is important for the rest of the market to catch on. I am not fighting market sentiment, just waiting for the GNSS fear to pass.
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