Our club began using stop limits shortly after some high P/E
stocks ( Nokia ) tanked. Although we organized our club on a
buy & hold forever philosophy, we voted in the change. Now
,to some extent ,it seems like we are trading. We have
stopped out of 5 positions this year. WE re-entered 2
positions at a lower cost basis after taking some gains. We
took the money from 3 other trades and reinvested it. Since
the club inception in June 2000, we have a 17% loss. The
question is what place do stops have in an investment club ?
If so what percentage of the stock price should they be set
?