Quote:
Originally Posted by wutamess
In a sense, lewdog is right.
My problem with some of it is. If I'd had just let shit sit just over the last 6 months to a year of my purchases, I'd be up about $100k for the YTD.
Using his method I've gained probably 10&15% in gains but nothing like what I could've made if I would've just held.
A profit is a profit though so there's 2 ways to go about this. A stop loss on NAIL isn't necessarily a bad thing.
I don't have stops on TSLA, NIO, Plug or AAPL and they're the drivers behind an almost $20k gains just within the last 2 weeks.
Glad someone mentioned NIO here last month.
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Oh there's more than one way to do this. I am just sharing my way, which is neither wrong nor right. I am just trying to educate that capital risk management should be at the top of people buying individual stocks. All it takes is a large position to draw down 25-50% and you've wiped out gains in most of your other stocks. Also, markets aren't always this easy to be "winning" and I think many people are going to be wishing they had a defined strategy for maintaining their capital when the market corrects.
I also have positions, like AAPL, that I consider long positions. I do not have stop losses on this or if I do, it's very far from where it's currently trading.
I personally like taking profits after a nice gain (10-20%) on 50% of my position. If I time the stock correctly, this happens in a few days to months. I will many times then let the remaining position run by placing a stop loss at purchase price. This way if the stock retraces, I still have pocketed whatever gains I made on 50% of the position, no matter what. By placing the stop loss at purchase price, I also have a smaller chance of getting stopped out quickly on a stock that may continue to run.
Good discussion and please share others' ideas for buying/selling.