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Originally Posted by Stu from NYC
Wait a minute thought it was a mutual fund managed by funds such as Fidelity or Vanguard
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No mutual funds and ETF are completely different animals. Mutual funds price once a day @ market close and any buy/sell orders are executed at that price for the day. ETF’s price and trade all thru the day just like an other stock/equity name and therefore behave just like a stock as far as buy/sell/stop loss etc.
Case in point on stop losses, if you had a stop loss in place in the past couple of months you would have possibly sold and then missed the relief rally that has followed. Many many tales of folks closing out positions at the nadir of the market (2008, 2020) and then missing the rebound. The second problem of selling on a loss is then you have cash to deploy but many folks are then afraid to get back in the market. As I said before, balance your portofolio, look at it on a reasonable schedule, keep a year of two of living expenses in cash and enjoy your life. If you are really worried about another 1987 or 2008 drawdown, put it under professional management and enjoy your life. If you like watching the market and actively trading then by all means trade. At this point in my life, time is more valuable than money so the market can do whatever it wants, I am going to enjoy my life while it does.