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How trailing stop loss avoids investors getting married to loss making stocks?

Posted By On 11/03/2008 02:53:00 PM Under

1. It is rightly said that do not get married to the stocks as when the trend reverses and one is not able to cash out than it may be years before one can even dream of realizing the capital invested.

2. I get numerous personal queries from people who are sitting on stocks like Himachal Futuristics bought at the exorbitant level of Rs 2000 and stock like ACC bought at the level of Rs 8000. Their general query is that when they will be able to see these levels again.

3. My answer to such persons is that these levels may not be achieved and thus instead of weeping on split milk it is bet5ter to start with this trailing stop loss technique so that one is not married to the stock and is out of the market when the trend changes.

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