While I was on vacation earlier in August 2009, with stop loss orders set at 20% on most and 25% for harvest, I came back and discovered that I got stopped out of one of my positions, the ING Clarion Global Real Estate Income Fund (IGR), because the price temporarily and suddenly dropped mid-day by some 40% as if one large position was cashed out all at once. I got stopped out relatively high on that drop, and the price subsequently shot almost right back up to where it was, albeit a little below the high for the day. Not only had I cashed out on a stop loss after a 50% gain in about two months' time, but I was also able to buy it back lower than I had been stopped out of it. However, I only bought back enough shares to equal $ 200 worth and kept the rest in cash.
With the extra cash from that, and some extra cash I threw in, I also acquired a position in ING Clarion Real Estate Income Fund (IIA), which I have long been eyeing and finally bought, again about $ 200 worth.
Near middle of August 2009, there was a more sudden sharp drop in the overall market over two or three trading days which was nothing more or less than a normal profit-taking correction, however, nearly all of my stop loss orders were in danger of being triggered. It was then I decided to cancel all the stop loss orders and instead watch the positions closely.
All my positions are long, and I don't want to get stopped out due to normal market movements even if they are somewhat volatile still. However, I still need to be ready to sell in the event of any unforeseen acatastrophic event.
In the meantime, my overall portfolio is up 10% and enjoying monthly dividends of about 13% annualized and growing still.
For more information on Tony Farrell's High Yield Monthly Dividend Stocks see http://www.monthly-dividend-stocks.com