Originally posted on 04/01/2019:

Quote Originally Posted by homie1975 View Post
ROYer
you are another of my guys here and i love reading your thoughts. so since this was a nibble after friday's IPO, i only took a small position. i did not put a stop loss order in i typically do not because when a stock drops say 15% or more, i typically buy more. i'm concerned that if i use the stop loss and then i immediately buy shares again because i like the lower price, it's going to be considered a wash sale.

sorry for the rookie scenario but please let me know your thoughts on this strategy. when i take a position, i usually put only 25% of the amount of my portfolio that i have allocated for the stock. so i only bought 25% of the shares of LYFT that i am willing to commit to. i am willing to buy 3 more times at 25% each if it drops another 15%+
I hear ya loud and clear.

I don't always use stops either.

I would on lyft because no one has any idea what the value is. That will be settled in time. It may be a $6 stock it may be a $600 stock and trade at a 300 multiple who knows.

I would use a stop in lyft's case because it could go down to $6 and still be a successful company. Now if you know something about lyft or really believe in it long term and/or plan to hold it at least a few years then use the ole "fall on your sword" strategy and skip the stop.