> To be honest, I hadn't heard of the phrase
> channeling stocks before you asked your
> question.... After doing some searching, it
> seems to describe the tactic of buying and
> selling stocks whose prices tend to
> repeatedly fluctuate between two values....

Man, you could lose your shirt like that! Sounds like a day trading variant, and we all know how many people fell victim to that idea!

> I think the reason why he has some success
> while many others fail in using short-term
> trading strategies is because he uses firm
> stop-losses. I know he has a rule that if a
> stock falls 10%, he sells it, no ifs or
> buts!

Ironically, that's the rule I discovered for myself in this current nasty market. If any stock rises more than 15%, I sell it (no ifs, ands, or buts). If I like it, I wait for a dip in prices and rebuy it. I learned that one with one of my stocks -- went from a 16% gain to a 4% loss in the space of about 4 days (and there was no negative news on it or the industry. It just ...tanked.)