"One negative comment I heard about stop-loss is that it may cause cascading effects when the sp hit the level then the computer would take over selling the shares causing a nose dive of the sp...and triggering lower stop-losses on the way down."
This is true, but would you rather have a stop set up to catch you before you finish as low as everyone else who rode it down? Or would you rather take a 20% loss while others take 50 or 60. The problem with stops is that people set them too close. The formula I outlined keeps your stop a good distance away depending on the variables one picks so that they won't be taken out on a daily basis.
"It would be prudent to spend enough time watching your nest egg carefully...e.g. one cannot just put the money on the table, set up a stop loss and walk away from it for days, weeks, or months."
This is true as all investing requires one to do the homework and stay on top of what's going on. That's how you would know to raise your stops as the sp rises. I can state almost categorically that the bulk of NOT investors wish now that they would have had a stop in at $5.50 when NOT was at $7. It would have seemed like a big haircut.....but what do they think now?
Lots of ideas and perspectives and they are all good when applied properly.
As for Baba's comment about teachers. He may be surprised to find out what people actually do aside from their posting. As for the investing formula I put out in my last post, yes it is a bit complicated until you pick it apart then you'd be amazed at the simplicity of it and how much sense it makes. It has successfully for thousands in one form or another when people are consistent with it. But as others have stated, to each their own, grab what is comfy for you.
