Hi, curious to see how other people decide their stop loss percentage?
Is it as simple as say 8% across the board, or do you base it on the industry (eg say more volatility in resources so allow for a bit more). What about different categories like asx20, asx50, etc - The more 'bluechip' the category, the less percentage stop to use? (And also, if trading small amounts < $5k do you take into account the commissions - From looking at the NAB online trading page theres a $9.95 - $14.95 additional charge when using stops - eg. If I set it to 8% and it stops, I'm really losing more like 10% on a small trade when the commission is deducted).
I haven't used stops so far, but after a few stuffups I want to have them in place, but indecisive on what %age I should work with. I'm thinking 8% for my mostly short/medium term trades.