A Sell-stop violation is a situation where the weekly closing price of one of
our Long positions came in below our tolerance level. It is an indication that
the stock has become too risky to continue to hold. With Sell-stop violations,
we use a three strikes - you're out philosophy.
Note in this example with WLP how we divested of our position using Sell-stops to limit our risk on
8/24, 9/21, and again on 9/28 for a mere 1.2% loss:
Note in this example with BARZ how we divested of portions of our position using Sell-stops to
lock-in profits on 11/23, 11/30, and again on 12/7 for a lovely 14.5% overall gain:
