STOP-phobia

S

stepandfetchit

For those of you who have experience in long-term positions, do you have suggestion for creating/managing stops (with outstanding orders/contingent orders) that would not have gotten you slaughtered on SDY today? -- I am looking for advice (I did not have stop order on, so am fine, but no stops is generally unwise) -- SDY fell 36%, but recovered in one hour.
 
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For my long-term holdings, I set alert (to provide SMS msg to my phone) below a support (or whatever point I should reconsider holding the position). Then upon receiving the Alert, re-evaluate whether I should exit or not. This seems to keep me from getting killed for "some" of the wrong reasons (filters flash events, but not steep unidirectional events). My ability to make good decisions in the "heat of the moment" has room for improvement! ;-) (AKA: I suck at thinking on my feet.)
 
Long term and stocks I'd spread my funds over several maybe even 10 different stocks to reduce the risk.

Also if the market is bullish I'd still run 33% of the account short, for BAD days and vice versa.

Shouldn't be trading long term, where 10cents on the exit matters that much, so better off without stops I say.
 
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