Why its good to use stops and manage your positions

There are a lot of super gurus out there that don't use stops, or double down when they "feel" or "dream" that a stock is going to do something. What they don't tell you is that if they lose, they will put out a high priced, super hyped class that will leave you feeling cheated and just plain old disappointed and refund their gambling account.

I can't have my assistant wire out the loot from this month's bounty when I have a margin call. Therefore, I have to use stops at all times, or risk extinction.

You can't get it back tomorrow if you don't have any gas left in the tank after today. But even if you are running on fumes, you still have a chance.

Small stops, and try your best to milk your winners (my personal struggle for years), but always manage, manage, manage. It's your money after all!

RIMM from last week's small stop out:



tiny

I've read this book 20 times

I can't stop reading this book, and it has a permanent spot in my rotation. It's not a trading tactic or strategy book, but the money management techniques and trader psychology are invaluable. The stories that Buzzy tells as a stock, stock options, and futures trader are entertaining and educational, to say the least.

Pit Bull: Lessons from Wall Street's Champion Day Trader

Michael "tiny" Saul

tinymjs at gmail dot com

Be sure to actively manage any and all positions

Monday was a nice day for the Bulls, but it can change just as quickly. Don't put blinders on and think that we "have to" go higher. The market doesn't respond well to "have to"s.

Michael tiny Saul

tinymjs at gmail dot com