Does anybody remember the “Flash Crash” on May 6, 2010?
There is a short article you can find on the Investopedia site that explains what happened. That was the biggest one — trillions — but there have been a couple of others, too.
I guess there are now measures in place to prevent it happening, but when computers make decisions, who knows. . .
When I first started investing online, without a broker, and would have a significant loss, I would print out a copy of what had happened, stick it in my desk drawer, and look back at it days or weeks later. I called it, “vaccinating myself” against emotional, quick reactions.
My Rule #1 is “Know What You Own” and Rule #2 is “Know Thyself.”
That is how I work it, so I have never used a stop loss.
Low Beta Boomer
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