A Stitch in Time Saves Nine |
| Written by Ben | |||
| Wednesday, 07 November 2007 | |||
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I like proverbs. They are short popular sayings embodying some familiar
truth or useful thoughts. Much wisdom can be learned form proverbs. “A stitch in time saves nine” Your stop-loss, to be useful, must be refined. It’s easy to say, “Cut your losses quickly and let your profits run”. It is imperative that you know exactly where to place your stop-loss. If you put it at the wrong place, your stop-loss can easily become your stop-gain. Because every stock has a personality all it own, you cannot generalize. A stock which has a great velocity in its price is different from one that has a low velocity. Therefore, each calls for a different kind of action. If you want to trade, you must master the use of the stop-loss; otherwise you will get into all kinds of trouble. Never drive your car without brakes. Never trade without a stop-loss.         
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