Tuesday, November 22, 2005

The power of stop loss

Sandisk keeps going lower and lower. It's trading at $46+ now. More and more bad news for Sandisk. Overall, it's still a good company. But, investors are not aggressive to buy this stock any more. They want to sell it.

First bomb came from Tristan Gerra on 11/7. He said that flash memory prices could drop. That means that Sandisk's profit will drop. I put the stop loss as soon as I heard this guy. My stop loss was hit next day @ $60. I am glad that I got out in time although I had to take $250 loss.

Check the SNDK chart here http://finance.yahoo.com/q/bc?s=SNDK

Sandisk may come right back to $60 range in few months, nobody knows. But, I don't want to keep "hoping" for that. For now, SNDK is out of my mind.

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