Getting dizzy yet? The intra-day moves of the major averages don't even seem like they can be trusted at all these days. The major averages gap up, then implode and then come right back to close flat on the day yesterday. Then, this morning, the markets open flat, selloff and then are already fighting back on the day so far. That's the markets around historical highs though. And, this is precisely why the average Joe should never try and day trade. It's been my experience most people who think they're going to become day traders only end up ever getting chewed up and spit out. I've been around a long time, but even I don't attempt to ever day trade anything. It's definitely OK to swing trade ideas though - which is buying something and holding it for at least several days, weeks, or even months before selling it. As a matter of fact, in this kind of market environment, it's probably one of the better strategies, because nobody wants to be caught with their pants down if these markets do decide to dramatically move lower. Our overall list of featured stocks have literally been all over the map in recent weeks, we've had some disastrous moves in some and some phenomenal moves in others, but that's the small cap world - nothing is ever guaranteed. Clearly though, the returns can be very nice when in the right ideas. Even then, one can think they're in the right ideas, however, it's very common knowledge in the small cap space that most small caps can gain or lose huge returns in the blink of an eye, so if you're not prepared for that type of volatility in small stocks, you definitely shouldn't participate in them. Take one of our featured stocks, Cenovus Energy Inc. (CVE), as a perfect example. Up about 13% since adding it to our featured stocks list back in late June, it looks like the stock could be developing a pretty bullish pattern recently. If the price of oil and natural gas can continue to improve over the next few months, maybe CVE can find higher ground. But, you've got to remember when it comes to stocks like this, there's always a reason why they're down under $10 bucks. In the case of CVE, it's a ton of debt. It doesn't mean the stock can't go to $20 bucks someday, but there is a fairly full proof way to handle the uncertainty - it's called a stop loss. A stop loss is a price level where you've decided if it gets to that price, you're either going to take the profit or cut the loss. And let me tell you, when it comes to investing or trading penny stocks - or even small NASDAQ or NYSE listed stocks - you've got to always protect gains or minimize losses depending on which way the stock goes. Most online brokerage firms give you the ability to put in a stop loss ahead of whatever is going to happen. You can even do it when you enter your initial buy order. You can set a stop limit, or you can use what many refer to as a mental stop, which means not entering your stop loss limit when you buy the stock, but rather pulling the trigger and selling it if and when you see the stock has achieved your mental stop. This is pretty paramount when it comes to trading anything as a matter of fact, because it allows someone to realize gains when they're there, or cut losses when they've become too much. Sure, sometimes you can end up leaving some nice gains in the table, especially if the stock ends up being a huge homerun someday, but even then you can always put in a stop loss well below where the stock is trading and let it do whatever it's going to do from there. It's been my experience that if one is going to invest or trade smart, you should always pre-plan whatever you're going to do well ahead of time just in case the stock does something crazy. It's not just savvy, it's prudent. Even the best traders and investors on the planet will make sure they can live to trade another day when they're wrong, or protect at least some gains - and sometimes even monstrous gains - when they're right. It's always up to you, but it is something I'd strongly suggest on every single idea you're considering buying, or shorting for that matter.