Hi Rick, Saw your notes re stop losses and wanted to proffer the following - Not as I know as Im quite new but just some observations: - The books suggesting always using stop losses, were these before or after the onset of mass algorithmic trading? - Are they consistent in the % reduction you should set your stop loss at?
My thinking is that if everyone retail is playing by the same rule sets then these rule sets are easily manipulated - do we believe this happens? If a company had the money and the means, why not initiate some algo to move prices so you can trigger stops that everyone sets at levels all the books say that retail investors should set them at... you have broker data telling you who bought what & when at which prices so the data certainly exists but my guess is its far from legal.
Anyway just my pov for discussion. I use them sometimes (probably not enough) but as I think @golden6 said having them set offline and actioning them manually if you think the hypothesis for your investment has changed might be the way to go if you are online. As you say in a sharp drop they don't work anyway...
GLAH and have a happy Friday!
edit: Oh and thanks to all of the posters on the short term thread - I dont post often but get enormous perspectiv e and knowledge reading all of your considered post - Thank you !!
