Sorry for the multi posts, I don't know how to multi quote 2 or 3 different replies to me into the one thread to post a reply... if anyone can point me in the right way.
@pmd3nka I haven't set a trailing stop loss, but therein lies in my curiousity as to how someone shapes such a rule. For example is it really that simple as to mechanically forcing yourself to adhere to the 15% trailing stop loss? What happens when tree shakes and a violent sell down which you believe is a temporary blip is to occur? I guess it is those emotional, ad hoc situations where without a guide sitting next to me explaining how one should react, I would probably hold off on the automatic stop loss.
Usually then i find two things 1) the stocks I have been forced out, proceed to head up in a vertical fashion. 2) those i don't stop out, continue to eventually come back and bite me in the butt. Sometimes I seem to unbelivably call the exact opposite time after time that I can't help but wonder if I am that unlucky or have somehow got such a refined back to front system where I am accurately predicting the opposite to what I should want or be doing... not sure if others went through such a frustrating stage where they always felt so close to the money always.
Another example would be - keeping in line the recent topics of RDG (as I'm just keeping an eye on it as an example STT pick to run with) - at a 4c entry, with a 2c cash backing and 2c being paid for the rest of the business, say you believe it is very well worth 5-6c but you are not sure an exact amount. A 15% trailing stop loss may have it as a stop of 3.5c to stop out. Fundamentally the inner voice says to not sell out as it seemed like it could still run. Do you take the automatic stop loss on a hard and solid trading plan, or do you bend the rules and use discretion to overrule on the basis that you believe this is worth much more?
This usually precedes a downtrend that persists and rudimentary swearing as to not heeding the clear 'signs' of the downtrend and that smart money was getting out.
