In my humble opinion, which has been established over quite a few years and proen by the performance of the Lynas SP the following is one view of Stop loss use.
I conclude that the setting of stops are encouraged, sometimes enforced, by those benefiting from the triggering of these settings. If a loss is triggered it automatically establishes a loss. Adding to that loss is a charge for the transaction. Adding also to the cost is another charge for reinvesting either into another stock or back into the same one. The money lost doesnt disappear into a black hole but one loss is anothers gain.
This means that setting a stop loss price will automatically set you up for someone to cream off some of your capital. The way it has worked with LYC the SP is managed by some to regularly "skim" invstors. I would suggest that many who genuinely want to stay wth Lynas but have had stops in place have lost more in this stock than many who have held on regardless.
I wonder about the motives of those promoting the setting of stoplosses.
LYC Price at posting:
56.5¢ Sentiment: Hold Disclosure: Held
