Sometimes markets get nervous. Fear replaces greed. We saw some nervousness this week. As a medium term trader, or even long term investor, this can prove useful in many ways, one of which is to help set stop losses. Take TML for instance.

As you would be aware from past postings, I happen to think this company has real potential, in the sense that TML is developing some exciting products. (Live stock trading system for Asian bourses, internet applications for regional development in Australia to name just two.)

Wednesday 5th April saw a bit of a panic in the market for tech stocks at least. Note on this day the action of stocks, and the one here, TML, low at 38 cents. You could describe this truly as an emotional point. So it becomes important, and a good place to set a stop loss. (Even better, the gap did not fill.) Having bought in as I did when the stock was at 23 cents or so, now I can definitely say that should 38 cents break, it indicates a change of fortune for the company and I would do well to be no longer holding the stock. In the meantime, I can continue to hold, and give TML every chance to continue rising in price, should the stock do so, and I can ride the further gain, if there is to be one. And I have successfully, as best I can, locked in a reasonable gain to date.