Blueknight

Long Ideas for This Volatile Market

Great advice (intelligent exit strategy)......pros have learned that stops are a fools game as you will invariably get taken out at the lows. Trailing stops are better but with the vix hitting record levels this is not practical either since you will be taken out in short order unless your stop is too wide to protect profits anyway. This leaves (a)...spending your day at the computer ready for action...(b)....employ... more sophisticated protection like selling calls against a position or shorting a less favored stock in the same sector....not alot of good choices that I see considering that the premiums on puts are way too high to be practical. Any better ideas...I'm all ears!


On Oct 16 12:19 PM SmartStops wrote:

> Learn from this experience. Remember to ALWAYS have an Intelligent
> Exit Strategy in place from the start. One that will continually
> adjust itself to the stock's behavior and market conditions. One
> that will allow a stock to breathe but will keep losses to a minimum.
> Be smart!