A funny thing happened yesterday. I was reviewing my positions, and my system told me I was stopped out of GME with a loss of 0.4%. “Oh, no I am not,” I replied, “I am still in it, and it’s still green.” The position had looked good all day, and I was surprised to see that tail reaching down to $52.71.
Sure enough, if my system had been trading automatically, it would have taken the loss. I don’t use hard stops, though. I have a soft stop, which is a number written on my daily sheet. It relies on human intervention (me) to push the button. You can see why I missed the stop. Here it is, in two-minute bars:
That sudden dip lasted a few seconds, the result of stop-hunting robots. If you don’t believe me about the robots, consult Eric Hunsader. They have burned me before, but not today. Score one for the humans.