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Zweig Articles

 

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Some of the most respected names in the investment world (Granville, Weinstein, Dines, Magee, Zweig, Sperandeo, Schwager, O'Neil, Murphy, and others all agree on the necessity of using stop losses. Though they do not seem to agree on how much of a stock decline to allow before selling, they are much closer in their thinking than is apparent on the surface.

The "shock" market is the adult version of childhood thrill rides, but with no predictable beginning or end, and no way of gauging the size or duration of the peaks and valleys. This is one of the very few things that can actually be known about The Market, security groups, and sectors.

"Buy and hold" say the long-term investors. "Sell losers quickly to cut losses" say the short-term traders. "We are in it for the long-term" say the investors. "Hold only rising stocks, and let profits grow" say the traders. Though most people who call themselves "investors" are not really disciplined, those who are disciplined have much in common with traders.

 
 
 

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