Even as a buy and hold investor, you are still trading. The best place to be is the weekly and monthly charts. The stock market is a giant auction. Think in terms of supply and demand instead of how valuable the fundamentals say the company is. I want to go to an auction where they are selling 3000 Corvettes. Mercedes, ect. and only 3 or 4 buyers show up. I want to stay away from auctions where they have 3 or 4 cars and 3000 buyers are throwing their money at them. Figure that out and you can win big over and over. Enron taught us those who create fundamental reports are not always honest, but the data on charts is verfifiable each day. If you have a $100k account.....A 7% stop on 200 shares of a stock that sells at $30 isn't too much risk, but it is a huge amount of risk if your account is only $6k. Keep losses low through proper postion size, and by waiting for low risk high reward trades. Other wise you are food. If all else fails, ask your professers. they all know plenty of ways to screw up your mind, they might as well help you lose your money too.