Re: options (finance)
Rock1,
Is taking over positions worth over 250k with a stop-loss of 1k an optimal strategy?
I am confused because stop-loss sounds counter-intuitive. If you're willing to make a bet that a stock is cheap [or overvalued via shorting], wouldn't you load up more when the stock gets cheaper [or get more overvalued than before]? By using a stop-loss [especially at a small percentage with relative to your holdings], you basically admit that you were speculating rather than "investing."
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