April 12th, 2011 11:38 PM by Eric Fang
Everyone knows the importance of the stop loss inthe investment.
In 1999-2000 dotcom-frenzy era, it was so easy to make the money on the market, I day-tradedAMAZ(purchased at $280, sold at $400), CMGI, BYND, PRTL, etc. Though I made lots of money atthe beginning, since I did not take "stop loss",I lost almost all the money on the stock market.And I am glad that I did not have much money then.
And today, I have one investor backed out her purchase. Most likely she will lose the deposit,but since the property she purchased does nothave warranty, the bad quality of the workbefore the builder's bankrupcy, and not thatgood neighborhood etc made her deciced to take a stop loss on this purchase(on the otherhand, she got another good deal).
For my business, I don't take some application for anyloans. Especially those who cancelled my loan for no reasons(or a little bit better rate).Last year, I had only one loan cancellation.And the boy told me that he would do the refinancewith me in the future. And instead of "willingly"taking him back, and I took the "stop loss" and told him that I would not do the loan for me any more.For me, the market fuctuation is normal, and a little bit better rate is not an excuse to cancel the loan, especially after the signing.