Using Tight Stops

In this tough tape, many are struggling with their stops. It is very easy to become complacent and lose discipline, but we have to guard against it. This market is not so forgiving and more discipline is required, not less. Don't find yourself hoping that the market or Bernanke will save you in stocks that have turned against you.

Hope is not a viable investment/trading strategy.

Let me provide an example of what I'm talking about. Last September I purchased shares of Intuitive Surgical (ISRG) for my retirement portfolio primarily due to its high ranking within my favorite screens (currently ISRG can be found in 4 separate screens within my stock screen machine. It has been performing fairly well UNTIL the last few days. I know it may be confusing to suggest using tight stops now, but here's an example of what I'm talking about and how I'm using them....[READ]