If a stock is not acting right, . . .should you sell before it hits the Stop? Otherwise you can lose $4000 on each trade that goes south to the stop or below the stop. This market is so challenging right now, that you must try to minimize losses. (July 23, 2001)
The market is challenging and the name of the game is to preserve gains and to minimize losses as you pointed out. Indeed, there is no reason to stay in a position until it hits the stop if the play just does not work out. As long as the stock continues the pattern that we entered into the play for, we tend to give it a little rope if it is in a good sector; it can still perform for us if the price/volume action remains solid and it looks good otherwise. If it is questionable and you cannot answer 'yes' to the question 'would I buy this stock right here?', then it is time to get out regardless of whether or not your pre-set stop loss has been hit.
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