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  • Do Trailing Stops Really Work?  [View instapost]
    The problem Alexander becomes the fact that many users will then arbitrarily set their stops at a % number that is not optimized and has no bearing on the individual equity's behavior or overall macro trends. Setting stops is indeed important and we are glad to see you promoting it. It is the right way to manage risk. In fact it is the first step in the buy equation as you need to determine your correct position size. But the "where to set it", "when to adjust it", lead to the user needing a significant amount of training and time in order to determine where the stops should be placed. Should you always just have a 10%, 25% trailing stop? The answer is know. Basing it off just price was a good way for the industry to start, but its time now to bring in the smart intelligence that can adjust it daily based on key factors.

    TradeStops is a great site and I know personally Dr. Smith, but investors and traders need something more sophisticated but easy to use. Which is why we brought SmartStops to the marketplace. We would be happy to set you up with an account to evaluate us further.
    Apr 22, 2011. 05:21 PM | Likes Like |Link to Comment
  • Depomed: Light-Risk Small Pharma With Huge Potential  [View article]
    Risks can be managed properly.
    Apr 21, 2011. 04:30 PM | Likes Like |Link to Comment
  • Does Downside Protection for Precious Metals ETFs Make Sense?  [View article]
    that's only if you set you sell order at a pre-determined price point, vs. just setting the trigger to be the stop and the sell order to be a market order. Or course, then the argument becomes, well it can gap down and your fill comes at a low while that symbol then has a bounce back. However we can show over a period of time, that probabilities in deploying proper risk mgmt are placed on your side for better rutns.
    Or the stop can just be a risk alert , allowing you to take the next necessary best protection action, which we agree could take the form of a put option.

    Regardless of whether stops are used proactively or reactively, sizing the position to provide the right "purchase" amount initially is key as well to proper risk management and why we've also released our position sizing calculator at: www.smartstops.net/Pub...
    Apr 21, 2011. 01:38 PM | Likes Like |Link to Comment
  • Does Downside Protection for Precious Metals ETFs Make Sense?  [View article]
    David - why suffer 20% even when you don't have too? That's why we brought SmartStops.net to the market. You need an intelligent analytical backend optimization engine, that takes into account both macro trends and the individual equity/etf/etn trend to determine what exit price should be used vs. just picking an arbitrary number, whether 10, 20 , 25 .. Plus we are adjusting it daily thus making it a dynamic continual optimization. I'd be happy to set you up with a test drive of a more fine-tuned approach, better results approach. Feel free to contact us at support@smartstops.net.
    Apr 20, 2011. 03:09 PM | Likes Like |Link to Comment