Basically, what I do is place a stop, generally 10 to 20 percent below the current price, whenever I buy a stock. The exact level depends on my own analysis of a stock's trading pattern. If a stock violates this stop, I'm out.
This quote highlights the importance of disciplined risk management in trading. Setting a stop-loss order helps traders limit potential losses by automatically selling a stock if it drops to a predetermined price. The flexible approach—adjusting the stop level based on the stock's trading pattern—demonstrates a blend of technical analysis and personal judgment. Such strategies emphasize controlling emotions and sticking to a plan, which are crucial for long-term success in the stock market.
