Reader Jeff writes,

Hi Gary,

Hope you got your power back!

Are you still an advocate of the 4%/3% stop/limit these days?  I'm noticing some of the recent picks get stopped out then perform beautifully in subsequent days (i.e. NFLX, ABC).  Is it just the crazy market to blame, or should I look at adjusting my orders?  I'm debating a 2% limit and 4% stop, which i think would maintain a decent expectancy based on my limited back testing. 

As always, sincere thanks for your thoughts.

Jeff

Jeff, I’ve noticed the same thing!  Chalk it up to a volatile environment, I suppose and in times like we’re going through now, I do think wider parameters are necessary.  Remember, though: if you widen your stop, you might think about widening your target.  If you chose not too, just remember that you’ll get more wins, but when you do get losses, they’ll obviously be larger.

P.S. As I write this, power is STILL out.  Beyond frustrating…