It is not really possible to learn from someone else's problem. People just have to make the same mistakes anew.I was sitting here working and happened to turn on CNBC to see the coverage of the Greek protests and imagine my surprise to see the DOW free falling about 800 points in the blink of an eye, it seemed.
This was no accident, IMHO. I think we're all grownups by now since this economic meltdown occured. There was someone behind the curtain pulling some levers today. As a typical not-very-sophisticated investor, I wouldn't put one more dime into the stock market.
Follow the story on CNBC that it was triggered by trader error and traced back to CITI!!!! Which just happens to have a large government ownership.
I was sitting here working and happened to turn on CNBC to see the coverage of the Greek protests and imagine my surprise to see the DOW free falling about 800 points in the blink of an eye, it seemed.
Yeah -- "erroneous" or "crooked"?
And that was the market overall, not individual stocks. If you held PG at 62 and put a trailing stop at 55, it may not have been executed until the price dipped under 40.Yeah, but but you only lose 7-8% max with stop losses, and your upside is limitless!!
Interesting that the dip was so rapid and roughly the magnitude of the "conventional" wisdom to set your stop losses at 7-8-10% of the trailing stock price to "lock in gains" or "limit downside losses". Works great until you see a black swan day where you have intraday volatility of 9%, and subsequent recovery of most of that.
FBN or CNBC says it goes from 1000+ to +2000
Yeah, but but you only lose 7-8% max with stop losses, and your upside is limitless!!
