Stop Loss

Feb 07, 2022 05:37 AM 0 Answers
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Hi Marty,

I see that you have  stop loss at 5% - in the list of stocks that are shown I see that you bought NVDA and other stocks and they are now 20% less than what you bought -- did you get out of these stocks using stop loss or are you still holding them ?

Yes, as a rule I use a stop loss at 5% on every entry. Another sell rule is when a stock slices its 50sma with volume on a weekly chart. Another rule I use is to never allow a profit to tun into the loss column.

I had a great entry price on NVDA at $162, $207, and $230.  I liquidated the position when it sliced its 50sma with volume on the weekly chart. The semiconductor fabless group was a top group just a few short weeks ago, and now it is ranked #50. Those stocks have seen considerable selling in the past few months. NVDA in particular was down 9 of 10 weeks before breaking that streak last week.NVDA is one of the liquid leaders and a stock that I will always watch. It has been struggling along with the Nasdaq the past few months. But, it found support at its 200sma, and bounced. The problem now is that is must trade through some overhead supply and resistance at its moving averages. This is a process and will take some time. It is a great growth stock with tremendous fundamentals, and a stock I will likely buy again at some point. But, for now, I must stick to the rules.

I hope this answers your question.



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