Buffett, I still think it is a good idea to use stop losses especially in your first year or so when you haven't yet seen a company you thought had a lot of promise actually nosedive while you watch other companies skyrocket. some time to learn a few ins and outs of the market. I don't have a hard and fast rule about stop losses but I wish I did in the first few years I've been doing this. I'm starting to get into the practice where if it breaks a chart pattern I'll get in or out of a company I've done research on. Research is very important I feel, to become familiar with a few companies and then you have a few options to look at. You can start to recognise which companies have more chance of making you the big money you're after. If you feel like it's starting to spiral out of control you can always sell up and leave your money in the bank while you have a rest. Give some time for your experiences to sink in too. These are just my opinions and I have a hard time sticking to them myself. The major hurdle I feel when you're beginning is being familiar with the good, the bad and the ugly of the stockmarket.
