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Smarter Investing in Any Economy: The Definitive Guide to Relative Strength Investing, $39.95
One problem momentum investors face is knowing when to sell. Most investors in the 1990s set stop losses for each position they entered. They often followed rigid rules, such as selling if the price dropped more than 8 percent from the purchase price. This approach doesn’t factor in a key point: The market doesn’t care what an investor paid, and 8 percent below the purchase price may just be a normal retracement in the stock price. Routine price action shook many
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