I think everyone plans on it. But what happens if you don't protect your downside? Preservation of capital is the only thing that can keep you alive in the trading game. If you have too many losing trades or one big loss from one trade you're finished. The only thing you can really bank on is volatility. So if you don't plan all your trades and have tight stops, how can you hope to survive?
hmmm another interesting point but depends on situation i guess becuase im trading in WHT right now and its very volatile and goes up 8% and down 12% in a question of hours so does that mean that i should loose 12% for a potential gain of 60%??? i guess to me its more how confident you are in teh stock you are investing in.... like buffett would say putting the odds on ur side... i have seen that most stock if they have a good base model they usually go up at one time or another... the only questioin is the patience to wait for that moment.... IMHO chahine
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