No. 1 Trading rule of my dad: Use stop loss for both cutting the losses and trailing the profits.
From looking at my dad for years I have learned that stop loss is most important thing in possibly any business. It is more like the most obvious but universal rule. However, people(including me) always forget about it. People believe in thier taken position so much that they are willing to risk every single one of their penny on thier investments. But usually either end up loosing it all or get stuck in a low zone where their investments are of less worth then the stop loss values.
With a stop loss you will get a second chance with half(depends on set value of SL) of your money. Where others will get stuck in a stock without SL(stop loss) and wait for years for thier position to rise up, you can always use the remaining of amount to invest in something else. With a SL you make sure that even when you are not looking at your position 24*7 you will still be able to save your half of funds in case of your portfolio crash.
With a trailing stop loss however you will assure that you will always end up with a profit no matter what, in case your portfolio goes up and later crashes. You don't need a bloomberg live terminal, an economist or an expert trader to learn the trading rules. You can read some news and just go with your instincts but with a trailing SL and pick any position you like. Greed and fear is always there and will be there forever to influence your judgement, but the SL will always be a there to take the most logical decision on your behalf.
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Domingo Friggin Ramirez : stop loss on AMC is a terrible idea... these hedgies often go stop loss hunting to close ur positions out on the bottom, before it rips back up.
stop loss us for those constant longs, not a volitile short squeeze. Voltswagon squeeze is proof
Anonymoo OP Domingo Friggin Ramirez : I understand your argument. However I consider AMC as a gambling stock. The price of it is most likely the product of extreme shorts and extreme bought. This volatility is the game play of larger corporations evaporating the positions of smaller investors. The reason is AMC is not doing so much well as the price reflects, it is also not going to get very high profits after people will start going to watch movies again. In fact it has piled up rent losses due to lockdown. Also, people got habit of watching movies in home due to lockdown. This, if anything the gas and petroleum company stocks should rise up due to sudden increase in travelling. Also the travel and leisure stocks. Investment should be always in opportunities.
There is always high risk associated with higher rewards. We don't know if AMC keeps up this pace or suddenly crashes with same speed.
Domingo Friggin Ramirez Anonymoo OP : your looking at the stock from a fundamentals standpoint.
ur missing the whole reason why the stock is way up, and why it will continue to climb into the hundreds or thousands per share.
if AMC doesn't make a single dollar from today onward, they still have enough cash to keep going for two years...
ppl want to get out to the movies. i went as soon as theatres opened, and have plans to go for top gun, and all the marvel movies.
your running off outdated info my friend..
Domingo Friggin Ramirez : longterm AMC is fine, and short term those investing in amc are jist buying and holding until we see hedgies going bankrupt.
buy, and HODL.