Forget stop losses I need stop gains. I can't tell you how many times I've been down on a stock and promised myself if I break even I'm out. problem with that is when you break even the stock is moving up and human nature and greed tell you to stick. AA & TAxi great recent examples of this phenomon in my portfolio.
Same thing with certain cyclicals and/or spec plays. I'll buy in going, if it hits $____ i'm out with a nice profit before the downturn or honeymoon wears off. But when it hits $______ there I st not pulling the sell trigger only to ride the inevitable cycle back down or bad news from _____ that kills the spec play. DE & RMBS come to mind here.
Stop losses are great for minimizing the amount of you lose but the whole idea behind investing is to make not lose money. I'd have made a lot more money in my investing lifetime if I could have set unchangeable stop gains and had them execute even against my will.
Hey Chucky Schwab get on this would you?
Toasty "help me help myself" 54
Disclosure: The author is long AA, RMBS, DE, TAXI.