I retain stop-loss orders on all my positions. On occasion, fewer than ten times a year, I am facing a really tough morning in which I need to decide whether, one, just to grit my teeth, let a portion of the positions get blown out by their stops, or two, delete all the stop orders and re-enter them with the hope that the worst of the buying will be done soon after the market opens.
Today, I decided to just let the stops stay in place, and the result was that I got zapped out of some of my positions at pretty much the worst prices of the day. This psychological “insurance” cost me many thousands of dollars. It would have been better to have just strapped on a pair. This was a $10,000 insurance premium that was valuable for about five seconds.




