I bought CSTR this morning at 69.34. As I discussed on Saturday, it seemed to be the strongest of all the Leaderboard stocks. It opened higher today, then immediately fell and eventually worked its way back to just about even for the day on slightly below average volume. I have placed a stop-loss order at 64.49 which would be a 7% loss.
After my experience with ALGN I am giving serious consideration to discontinuing my use of the stop-loss order. If I had trusted myself to have the discipline to follow a mental stop based on closing price, I wouldn’t have been stopped out of ALGN and would currently have a profitable position. However, it is also possible that I’m just cherry picking one example and not giving enough credit to all the bad trades that stop-losses have saved me from.
I found it interesting that I didn’t spend my day obsessing about what CSTR was doing. Much like I talked about with the ALGN trade a few weeks ago, I feel very disconnected from the position emotionally. I have faith in the strategy I am trading and this one position will not make me question it. This is a huge improvement from some of my positions earlier this year. Of course, it could be a totally different story if CSTR goes on a big run here.