SOME of it is good advice.

I, too, never invest more than a fraction of my account value in a single stock.

However the 10% stop loss thing is just plain being scared and you're potentially missing out on huge gains when you do that.

When I bought IBIO on 6/5/2020 I paid 1.55 a share.

On 6/8 it fell to 1.38, which would have triggered lew's 10% stop loss.

On 7/20 it hit 7.23 and I sold for YUGE profits.

It depends on the stock I suppose but 10% stop loss? :-) GTFO
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Here's another one for you: CDEV

Bought on 5/27/2020 at 1.16 a share.

bae tanked to 75 cents a share on 7/10

stop loss my ass because i sold at 2.98 two weeks ago
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I stop loss after a profound run up and that's so I can buy back in after the inevitable pull back dips further than the stop loss. Ride the next run up. Rinse, repeat

But I barely know what I'm doing so YMMV
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Totally disagree with the 10% stop loss advice.

As always, one has to diversify. Stop loss can make sense for more risky stocks but 10% is not enough.

I personally rarely use stop loss but for the most part I stay away from small cap stocks.

That's my opinion.
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It about entering a trade with no more than 10% of your account, not about how much that stocks gains and results in it being more than 10% of your account value.
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Real traders, in real markets aren’t messing with large percentages of their account value and shit penny stocks.

IBIO also went below $1 after its summer run up. Plenty of bag holders still in it.

It will bite you one day.
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At some point you won’t be trading in a bullish market and buying back in on a dip could result in your capital being tied up in a losing position (no stop loss on entry) for a long time if it doesn’t pivot and reverse trend. That’s where reading charts and technical analysis can make it at least better than guessing.
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Clay, can you provide any examples of stocks over $10? :-)

How long did you stay in IQ, what was the loss?

Also you realize getting stopped out doesn’t mean you can’t re-enter later? You’re acting like these $1-2 stocks that went south after you bought them had 100% certainty to go back up. That’s not always the case. The chart could tell you later if it makes a strong pivot and should be bought back in.
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Agreed on chart reading and finding bullish opportunities in a bear market
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This year I've traded CCIV, VTIQ/NKLA, VIAC and SPY all well above $15.

Stop lecturing me.


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If stocks you’re entering are falling significantly after your purchase, your technical entry sucks.

Also, just trying to provide useful capital risk management suggestions in a thread that feels like Reddit.

Xoxo
Lewdog
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Thanks, dad.
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Gotcha.
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So after maxing out a 401K, IRA, HSA, and having a 6 month emergency fund, would the minimum goal of investing all other funds be to simply gain more than your mortgage interest rate?

Assuming you're free of all other debts
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