Pay attention wrote:
Pointing Out the Obvious wrote:
Opportunity costs are every bit as real as any other cost. There is no such thing as a free lunch.
That has nothing to do with stops. You need to educate yourself about this selling method before chiming in.
Actually it has everything to do with stops. As soon as you sell you lock in whatever gain/loss that you have up until that point. But now you are out of the market and hence will be paying the opportunity cost of not being in the market should it rise.
People of ignorance believe that stops are some magical way to increase rewards without increasing risks (or reduce risks without giving up rewards). They are no such thing. They are emotional crutches. Nothing more. Very similar in that sense to the emotional crutch of dollar cost averaging.
It would seem that you are the one who is lacking in education. Or is it simply a lack of intellectual capacity?