Readers know that I recently changed brokers, moving from Brown & Company to ThinkorSwim. I sold all my holdings to start with a clean slate, and also to avoid any time in limbo while the account gets transferred. One of the stocks was PDL Biopharma. PDLI is down hard on its earnings report. I probably would still have it, had I not been changing brokers. It is better to be lucky than good.
I wrote about limiting losses on Monday this week. Unfortunately, when a stock gaps down on news, losses are going to happen. I don't like having stop loss orders on the books, because stops can be picked off. There is no sure fire solution and each trader must find his/her own way to manage the risk. Sooner or later, bad news comes. On average events like this are once a year, or once every few years, but if a person is active in the markets their number comes up. Best to have a plan, before the sh*t hits the fan.
Yesterday's dump in silver stocks was mostly due to news from Bolivia. They are nationalizing some mines and investors will get little or nothing. Stable governments and the rule of law are often taken for granted by American investors. History buffs know that nothing is for certain, especially over the long haul.
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