Shorting and stop-losses - Page 2

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Shorting and stop-losses

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#9 (permalink)

02-03-08, 07:03 PM

Novice Investing Novice Investing is offline

STTG Regular

Join Date: Jan 2008

Posts: 78

I think a 10% stop loss is not logical to implement, unless you are day trading. Stocks can go up and down 10% in days. You may predict the direction correctly (which is down), however, you may get stopped out so many times if you look at 10% stop loss.

Since shorting is quite a dangerous game to play with, I suggest you buying a put option instead of initiating a short position.

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