Aches from the Shakes

Last week was one that drove people who use automatic stop loss orders nuts. I literally saw all my stops get popped, like someone had lit a bunch of fireworks. By mid-week I was 100% in cash.

 

$YY was the ultimate shakeout that got all weak holders out before rocketing upwards upon return of partial (very partial) sanity to Congress.

 

The problem is managing risk while not getting your gains choked off. I use automated stops because having a day job prevents me from doing anything else. However if a stop is invalidated, e.g. the stock reverses higher, it should be bought back, especially if this is on strength. Either that or I would need to keep my auto-stops low enough not to get shaken out while protecting my portfolio from catastrophic loss and maintain an alert with a higher, 'soft' stop, which is pretty is easy to do now with the new Marketsmith trendline alerts. Just draw, right click and set alert. Excellent!

 

$YY is also another example of a stock that on the daily screamed "SELL!", but the weekly screamed "SUPPORT! BUY MORE!". Making this key difference adds to my ability to stay on the trend without getting left out unnecessarily and losing out on profit.

 

I'm curious to know everyone else's experience during this violent shakeout and what they did to handle it. 

 

Current holdings:

Long:

BRZU +6.96 %

CPA  +1.89 %  

SYNA +9.66 %

NFLX +1.02 %

TSLA -2.10 %

ATHL -0.92 %

NUS +2.12 %

BLOX +4.54 %

 

Short:

NUAN +2.88%