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[QUOTE]Originally posted by bb money: [QB] I too have heard this PCola, but as you said many times it does make sense for an individual investor to set these. [QUOTE]Originally posted by PCola77: [qb] By the way, as far as stoplosses, I had an interesting conversation this week with a hedge fund manager. I asked him how he decides to sell a stock, and if he uses some type of stoploss. He said something like "We've had conversations with a lot of people who basically mock us for not using stoplosses, and who claim their funds are better than ours because they have stoplosses in place to limit downside. We always ask them how much money stoplosses have saved them over time. None of them ever know, but we do. We backtest every strategy known to man, and have yet to find a stoploss that adds value, and in fact most actually diminish returns." Now, obviously as an individual investor, you pretty much have to set them, but for a fund, who has 200+ positions at a given time, they found that they actually would miss out on some big gains by having stoplosses in place. In other words, to save 5-10% of downside, you're potentially missing 50%+ on the top end. Not really related to the thread, but pretty interesting stuff, I thought. [/qb][/QUOTE] [/QB][/QUOTE]
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