Disappointing stop loss

[mtbc]

With everything else that is happening for me domestically, I have not had my usual time to put into stock market research but, of course, events keep happening so my portfolios have required management nonetheless.

Previously I did not use cautious stop loss orders because none of my backtesting showed their worth. However, I since read others' research suggesting that selling after a drop of 10% or so tends to work out best in the long term. Not recalling if I had tested that specifically, and not having time to do so at present, I opted to follow others' wisdom.

Last week's stock market jitters did not serve me well. Some of my stop limit orders triggered and I would now be making out better had I simply held, as I used to. A glance at Upland Software's journey last week illustrates adequately. I can't complain, goodness knows I've made plenty in recent years, even still this year overall, but it leaves me wondering whether to return to the previous tried and tested, or to not let a single event shake me from what also seems to be conventional wisdom.

Comments

[wpadmirer]

I know nothing about the stock market, because I've never had the money to even consider investing.

However, I would say that if you're trying something new that you let it ride for a short while before deciding it's not working. It seems to me that the people who get into the most trouble are those who make changes constantly at the slightest provocation.

[mtbc]

Very true. Similarly, I'd previously had a stronger tendency to simply hold exactly out of trying not to make constant changes as the winds blew!