In Reply to: re: a little bot about the stocks-in for repairs posted by Ed Gilligan on January 22, 2010 at 18:59:58:

This week the market dropped down low. It is what is called a shake out. To shake out little people like you and me. I just learned to trade on the computer and lost some money. I lost x money and that is not cool. The cool part is I made 6 and 1/2 times x,so I made only 5 and 1/2. Then the market came back and I made 90% of x back, that is cool. I wonder if I can keep it up. Some lost $132 a share, in that shake out. It is important to do your homework in the library. You company must have made a profit for 9 years, making one now, ect.
Now I just learned to put in a Sale Stop, (I would call it a stop-loss). Here is how it works. I placed an order to sell the stock at x price (8% less than I bought it at) Now if the price drops to x level, poof, it is sold. That limits your loss to 8% of what you paid for it. I can't believe non of my stocks sold, in the shake out. When the stock doubles or triples in price, you take 8% of the new price.
They didn't drop in price enough. When stock sell like that, the cash is put in your account. I am not getting rich yet, but I am paying the bills.
I hope no one minds this blarney, but it is what I wanted to know at 22 in the army. One messed up fellow I helped was brilliant, his mother and father were teachers in Harvard Un. I asked him to help me read the stock market paper. He said he would, but never did. culater