November 25, 2013 Comments

On Monday, the S&P 500 and Toronto both ended the day down very marginally – basically flat.

Constellation Software fell 3.6% to $186.55. Earlier in the day it got as low at $178.50. This caused me to ponder why I had not sold my shares last week (at about $200) when I said I was thinking about it. There was no immediately apparent reason for the drop, as far as I know. Possibly this stock illustrates the perils of stop loss selling. What if someone has a stop loss in at $180 and it sold there just before bouncing back to $186.55? That would not be fun. I virtually never use stop losses. I sell based on valuation, not when the crowd is selling.