topic 7: STOP-LOSS (part 3): mrtq13

MORE ON STOP-LOSS:
Now-the stoploss stratyegy-well,that is another skill that
one needs to acquire!!!
For example,it was reasonable to put 10% or more
stoploss in a stock like NCC.................Why????
because of its price level and future.............It was at its
low considering FA and TA. And how low can it go
more.......? So,in such situations putting 10% or even
15% makes sense............It gave whipsaws. And that
happens........
In TA's term,this is called "ReTest of Bottom". What
happens is,before going up strongly,many times a stock
goes below from its normal trading range. This way
weak buyers get shaken out.Thus,it creates whipsaws.
This is a very strong signal for upward
move...............See the Retest of bottom Atlas
below..........How do you know that it is a
retest............??? Actually,you never know...........
But what we can do is to setup the stoploss in such a
way that it will keep us alive,or we won't get stopped
out..........And again,this stoploss has to do all with price
level and stock's Fundamental condition in many
ways............
If we put lose stoploss for Banks,it will make sense. But
if we put lose stops for Insurance or mutual funds like
Aims and Grameen at the moment,well,then we can
expect some bad experience..........