Losses....the biggest problem we have

[louisg]

A decision to buy a share for the long term should always be based on the FUTURE earnings outlook of a company and NOT on the PAST price performance (up or down) of the share. Surely if the companies earnings outlook is still intact it would be folly (as a long term investor)to sell a share just because the share price has gone down. However, as a short term trader I understand it is a cardinal sin to hold or add to one's position when the share price is going in the wrong direction. Is my assumption correct about the short term trading strategy? Anyone.

[#2]

What about the opposite? How long should you hold on to a gaining portfolio that could turn into a loss at any time? Do you sell and take the small profit or do you "let the winner run" only to see it turn straight down and into a loss making position, which you then sell so that it doesn't turn into a big loss? I know Simon will say follow your exit strategy, but I find that in the current volatility, anything can happen and your exit strategy may become meaningless...

[#3]

u scale out....I use thirds....first third I sell for small profit...that covers your cost ...time/fees/risk etc....next lot sell at bigger profit....then u let the other third run with a trailing stop...u can make this trailing stop quite generous...u have your profit and this is just the bonus...

[#4]

Hi Chartist, i am interested in the stop loss you set on entry. What is your cut-off for defining a losing trade, and what percentage lost trades do you budget for in your trading strategy?