re: diversification - trailing stops Hi Guys,Many thanks for the...

re: diversification - trailing stops Hi Guys,

Many thanks for the food for thought. Lots of god things to look into as funds allow.

Trailing stop loss:

This sounds eminently sensible for a volatile stock such as Tox, even with a northward graph. Set at the right price point, I can see that somebody using a trailing stop on Toxo could have near doubled their holding for free twice during the pul backs in the run. That's a lot of extra shares & profit. Of course, you have to have the cahunas and the knack of picking the bottm as well as the top.

Can anybody clue me in on the mechanics of this? Can I set a trailing stop loss through Sanford, or do I just have to adjust it as and when required? Can you s[pecify what basis the trailing is calculated on i.e. % drop, True Average etc.


With 1.89 million shares (after conversion) will a stop loss order work? It is conceivable that there won't be enough buyers at the price of my stop loss - would all my holding get dumped to whatever bids there were i.e even the silly ones at 10% of the trading price before the fall?


Grahod,

You say you set the stop loss for fundamental buys on fundamentals. Do you mean you set a price you think the share is worth and sell if it drop below that?

Profit stop:

This also sounds useful. I have been dallying with the idea of selling enough toxo so that I am free carried (how do you work out % profit when you are owed nothing?). After conversion my net investment in Tox will be about $58k. I can set a price that I am comfortable with. At 14 cents I would need to sell 409,000, but hang out for (say) 20 cents and the selling drops to 286,790. A significan difference.

Once again, thanks for the interesting suggestions and converstion.

Regards,

Keith.