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Discipline when investing

Hello,

yesterday I had to pull my stop loss for the first time this year at $NOVO B (-0.91%) . My stop loss was at 34.00. I had already considered selling at 37 the day before (as there was no rebound after a 15% fall), but then I thought that the SL was set for a reason, so let's wait and see. It didn't work out, but that's the way it is. Proceeds were immediately reinvested, half in approx.$IBM (-0.22%) and $EXXW.

How is it with you? Do you consistently stick to SL?

10 Comments

Chris@IronEagle

Unfortunately, I wasn't consistent enough, which meant that I didn't take some profits in time.

For new purchases, however, I now consistently set an S/L at -15%. If it doesn't work out with the new share, you have to realize it at some point.

On the other hand, I never know where to set the S/L for stocks that have done well. For example, I am up 60% in 2 months with Kawasaki thanks to @Tenbagger2024. Where should I set the S/L so that something like SAP (from + 130% to now + 65%) doesn't happen to me again, but I also let the winners run a bit. Really difficult.

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savvy_investor_2852@savvy_investor_2852

@IronEagle One solution would be to always adjust the SL to -15% of the high. But I also find it difficult to always be consistent. With shares like Allianz or Microsoft, Realty Income, I would actually say that I won't sell them anyway. But then I want to be smarter than the market when they break through the SL. But being consistent can also go wrong. I once bought Palantir at 14 and then sold it at 7 or 8. And after that it only went north. But that's the game. Sometimes you lose, sometimes the others win.

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Chris@IronEagle

@savvy_investor_2852 I agree that I will probably never sell $ALV $BRK.B and $MSFT (old stock from 2000 🤣🙈), for example - although things can go badly for a long time. 15% as S/L should absorb short-term market fluctuations.

With stocks like $IREN you probably have to keep pulling the S/L, although I am gradually throwing these extremely volatile stocks out of the portfolio - they cost me too many nerves 😃

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Dividendenopi👴@Dividendenopi

If the bank sticks to it, then I do that too😇. That's why I set the order and discipline myself. But that sounds more like.... then... but not

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BeachPlease@BeachPlease

I think of the SL like the alarm clock: when it rings, I don't press snooze.

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stocker_1862@stocker_1862

Welcome to the club! I had bought at 40, and stoploss at 34,. When I do the math, I say to myself. It was only 15% of €600. But -15% is -15%.

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savvy_investor_2852@savvy_investor_2852

@stocker_1862 Especially as they quickly went over 50 shortly before, after the approval of the slimming tablet. If you look at it like that, 30% quickly disappears into thin air :-)...if you always knew that beforehand

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Markus@MarkusF

Nope, I don't care about the ratio to the purchase price.

I added novo to my portfolio for 32. Super favorable even if the profits still go down a bit. At minus 20% profit, the kgv would still be good in the long term.

Price is fair or not.
The price is not interested in what you have spent

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Dividendenopi👴@Dividendenopi

Good example why an SL is not only mentally set, but also makes sense as an order, especially for volatile stocks or in general: $QURE is today for whatever reason, I could not yet research, by over 30% abgek.ack.t When buying and after some plus I drew a limit down and placed an SL order at 17.70 to limit possible losses. If I hadn't done that, I wouldn't have had the email from my broker about the trade but would have had to see the result.... From my point of view, it doesn't matter whether this happens with a trade or with an investment decision in general. I use it to define my capacity for suffering, can tighten the SL if prices are constantly rising and thus also hedge profits. However, the SL should not be set too tightly, otherwise you will be out faster than you would like and the next day you will miss out on a possible re-entry. This is not a general rule, I do it this way because I live off my assets and don't have 15 years to sit out major losses.

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savvy_investor_2852@savvy_investor_2852

Sell Novo 150 x 32.51, Buy IBM 10 x 192.00, Buy DJ Asia Pacific Sel Div 80 x 31.51

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