aja8888
Moderator Emeritus
Another reason I have an FA stock picker dude -
If my memory is correct, didn't your FA guy get you into IBM a few months back (you started a thread?)? How's it doing?
Another reason I have an FA stock picker dude -
If my memory is correct, didn't your FA guy get you into IBM a few months back (you started a thread?)? How's it doing?
Actually with a stop you make yourself very vulnerable to a flash crash - and you don't necessarily get to sell at your stop, you might get kicked out well below it. Then in a couple of hours it has recovered, but you've been sold out of it.You realize that for the most part mutual funds and ETF’s own 95% of the same stuff and most mutual funds have so much $ chasing those few one-off winners that it makes little difference in their overall returns.
I choose ETF’s over mutual funds in Taxable and deferred and exempt accounts for one main reason. I can put stops on ETF’s. If there is a stupid tweet or a mushroom cloud and the market heads south at lunch then I am out usually before a market halt circuit breaker kicks in. Most big ETFs trade in a narrow range anyway. I can also sell covered calls on ETF s.
Actually with a stop you make yourself very vulnerable to a flash crash - and you don't necessarily get to sell at your stop, you might get kicked out well below it. Then in a couple of hours it has recovered, but you've been sold out of it.
Actually with a stop you make yourself very vulnerable to a flash crash - and you don't necessarily get to sell at your stop, you might get kicked out well below it. Then in a couple of hours it has recovered, but you've been sold out of it.
Yep. Been there, done that, and I couldn't afford to buy the T-shirt.Actually with a stop you make yourself very vulnerable to a flash crash - and you don't necessarily get to sell at your stop, you might get kicked out well below it. Then in a couple of hours it has recovered, but you've been sold out of it.
How long have you been doing this? How many times have you been stopped out? What is your cumulative gain or loss since beginning to use the strategy?. If you have tight stop at 5%-10%. That is far from flash crash numbers for the circuit breaker. Even last flash crash, I lost $300 on a $300k ETF. I’ll take that insurance anyday on a flash crash turning into a rout.