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Steve,
Wow, "a priori" that one caused an overload in my dictionary program.
I think that a point that A.J. sent me should be emphasized. He said, "It's
important to keep things in generalities here. There is too much variance
within traders' styles, what is being traded, risk tolerance, size of
portfolio, preferred holding period range, etc." That said, the use of
stops is the greatest cause of losses for novice traders. I've had my own
share. I started using options for position protection for that reason but
that I don't think that will work for day trading. Futures Magazine
virtually stated that floor traders have information as to where resting
stops are located. If this is true the old standby "always place your stop"
is fallacious. So I'm back to what A. J. said. You virtually have to
develop the art of protecting your position and taking profits for
yourself. That shouldn't mean that some ideas can't be suggested for doing
that such as using options.
Best Regards,
Brent
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