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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@Amine I totally agree—stops are completely pointless.
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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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•@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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@Amine Thanks for the explanation.
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