Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Dear James / Shawn, Given the current market uncertainty, when MM buys shares would you consider setting stop loss prices in order to avoid significant capital losses, as seen last year in a few of the shares in the Emerging Companies Fund ? best wishes John.
Hi John,
A good question (again) and one we regularly discuss at MM but we always come to the same conclusion, putting an arbitrary stop loss on a position when we buy it belongs in a systematic, mechanical trading strategy. These have merit, but a strategy that involves fundamental & technical analysis overlayed with a good splash of macro thinking does not lend itself to running stops. We know we gave some positions in that portfolio too much room last year, we have learnt from this and continue to refine our craft, but you will not see stop losses published when we buy a stock.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
