Muzie

Playing the Market as Delinquencies Continue to Rise

"The slightest bit of positive news can send these things skyrocketing due to short covering. Use stops, use your brain, and be swift."

I find it amusing that the strategy you're suggestng is exactly what's causing the short covering in the first place. What makes you think your stop will better than anyone else's?

These are the types of stocks I would avise AGAINST using stops. If the thesis holds they will trend down, but they will whipsaw the whole way.

If you can't rely on your fundamental analysis and have to use stops to make up for your lack of conviction, then ultimately you are guaranteed to lose money, even if these stocks ultimately go down.