re: diversification What Paperclip is describing is called a...

re: diversification What Paperclip is describing is called a trailing stop!

A profit stop is a set destination or price above buy price that if reached then profit is realised.

Trailing stops are usually calculated from ATR(average true range).That way you can set the stop to suit the stocks individual volitility.Not get stopped out to early in other words.

When I buy companies from a fundamenal point I use zero technical stops but rather make decisions from a fundamental aspect.

Cheers