3Mon·

Reallocation

Hello,

I signed up $LMND (+0.61%) ubd $HOOD (+1.63%) . The stop was triggered yesterday.

Today, with this capital $MCD (-0.71%) and $PNG (-0.92%) bought more.

$HEI (+1.47%) They’ve made it back into my portfolio after being on the watchlist for a long time.

What do you think?

5 Comments

Amine@Amine

3Mon

I haven't used stop-loss orders in a long time. They've only caused me to lose money and miss out on gains. I buy solid companies and let them ride until I need the money.

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Cash B.@Lumimyrsky

3Mon

@Amine I totally agree—stops are completely pointless.

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Rubrn@Rubirubber

3Mon

Well, I've had a few stocks myself that did well at first but are now in the red. It's not a bad idea to lock in some profits, right? Do you set a mental stop-loss, or does it not matter how far they drop?

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Amine@Amine

3Mon

@Rubirubber Yes, in theory that sounds very smart, but in practice it’s almost impossible to achieve good returns over the long term. Plus, by using a stop-loss, you’re only helping the brokers: You pay fees for buying and selling, while they get your shares at a lower price. I once used a stop-loss on Nvidia myself: I bought at €125 and was stopped out at €175 (about 400 shares before the split). If I had just held onto the stock, my €6,000 investment would be worth €70,000 or more today. I understand why you think that way, but I’ve decided for myself never to set a stop-loss again!

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Rubrn@Rubirubber

3Mon

@Amine Thanks for the explanation.

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