The Investor 14 December 2004

Stop loss strategy can in fact stop you from winning. A paragraph in a recent article in some of the newspapers that run this column caught my eye. “If you feel a bit more daring, yet want to retain a backstop strategy,” it read, “buy shares and sell them if they drop below 5 per cent of the purchase price. Sell once they increase above 10 per cent of the purchase price.”

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