General Advice from StockDoctor on STOP LOSS

The StockDoctor advises you to never listen/pay heed to a person/persons who advise you to buy/sell stocks WITH STOP LOSS. If they are not sure of their own analysis about a stock, why are they advising others. Their argument that stop loss is to protect one's capital does not hold good.

The stop loss strategy will not protect your capital. Rather it will destroy it for sure. This is what simple arithmetic says. If at all, it is not the way to protect one's capital. Instead of stop loss you can take much much better steps if adverse price movement occurs after you buy/sell a stock. You will usually note the market retracing after taking out your stop loss. Advising stop loss is like a doctor asking his patient to commit suicide immediately to avoid further pain in case his prescription has adverse reaction. The Stock Doctor is deeply pained to see stop loss advises being made by even senior executives of prestigious institutions and through prestigious business channels. However these business channels' contribution in providing information to the trading/investing community otherwise is invaluable. There is no denying this fact.

Some programming is also aired advising you what to choose from "Exit" , "Hold" or "Buy More" options on the stocks you are holding. In case "Exit" is advised, before actually exiting the stock you may try Stock Doctor's advice if any.