brr interview with michael anderson at 10am..., page-16

mumstheword, et all

It is a matter of opinions. For, someone likes to make use of the stop losses facility, and others don't.

I am like JGPM and I don't make use of them.

Reason being, IMO, that there are two main reasons that I act in this way:

1)I am for most of the time, if not all of the time, a long term holder. And, in all of my years of investing, I have never seen a market going down and stay down for good after that. If you look at the history of the sharemarket, there has and always will be a cycle of the ups and downs. So if the sp will go down for a GFC, or a recession or for whatever other reason, chances are, and if you have the proverbials, that the market will always come back up to it's original position and even higher. The ones that will suffer in most of the cases when that occurrs, are the nervous nellies and the ones that made use of stop losses, the marging lendings, and IMO worse of all CFD's . I could go on and on, but I don't want to make it too boring.

One thing is for sure though, and that is, that if one has the money to invest, and is willing to make money while waiting for things to change, when the market reach those levels, buy as much as he/she can. IMHO, in 99% of the time when that happen, he/she will laugh all the way to the bank. Have a deep and hard look at the last GFC and what happen therein, and you will see what I mean.
As Warren Buffet said " Be fearful when others are greedy, and be greedy when others are fearful."

As such, when EXS and many other companies I held went down follwing the GFC, I loaded up as much as I could, with the current obvious result.

2) IMO, when you make use of the stop losses, and marging lendings, (I KNOW THAT YOU ONLY SAID YOU ARE USING STOP LOSSES), you leave yourself open for manipulation from the people that offer that facility to the market by making/declaring your position known to them and others that have access to that information.
What is not to say that, if they want your shares, they can/will manipulate the sp to that level by shorting a few here and there, and take your shares out at that stop loss level and then, if you want to re-enter, they will sell them to you at the highest price ?. Than, when that is all over, they will just sit there till the next opportunity to repeat the same dose. After all, why would they offer that facility if they didn't make money while doing it ?
It is then my opinion that, if one want to use stop losses, he/she would be a lot better by keeping his/her's card close to their chest without making it known to the manipulators and, when the sp reach the levels that he/she feels uncomfortable with, or consider to be safe enough for them to exit, just push the sell button.

This is just my opinion of the way I see thing, and it was not meant to offend anyone.

Cheers.