Importance of Setting Stops

Hello everyone and thanks for taking the time to stop by my blog.
Considering how crazy the market has been lately, placing stops is the most important and at the same time the most frustrating thing you can do.
I can't count how many time I have seen people take big losses because they never placed a stop when they purchased stock. By far the reason always given to me is "I hate stops I always get taken out of a trade at the worse time". Indeed this can happen and can be very frustrating but if we stop to think about it for a minute we realize that is the whole point of a stop. Yes I know sometimes it can be very frustrating but it will save you from loosing a lot of money as well.

Now there are many ways and theories to placing stops. In the coming days I will go over a few of the most common strategies and the way I try to limit my looses.

Until then just remember PLACE YOUR STOPS!