Then again, plenty of long-term investors took a 50% haircut in a very short time just this past autumn, and I wouldn't be surprised to see the market break sharply downward again in the coming months -- or to break up sharply. Lots of uncertainty out there. In my view stops are prudent long or short-term, leveraged or not, tax qualified or not, provided that they are set to accommodate one's risk preferences: not so tight that one is stopped out by short-term fluctuations, but tight enough to exit a severe downdraft.
Then their position was too large. You want the bulk of your position to be in what you consider low-risk assets. Stocks were never that. That said, I am not arguing against stops, just saying they are necessary for leveraged positions.
Copyright iTulip, Inc. 1998 - 2013 - All Rights Reserved
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.
Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.
Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.
Objectionable posts may be reported to the board administrators via Contact Us.