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Re: Multiplex - How to Stop Loss


Watching the Multiplex drama unfold has me wondering how to best utilise a stop loss in this situation.

Hypothetical situation - say you bought in after the price drop following the White City sale for about $ 3.20  (I had even seen some "buy" recommendations at the time...?)

You set a stop loss at say $ 3.00 in case more bad news does follow.

But what is the best way to trigger a your stop loss when bad news is imminent and the shares go into trading halt?

Do you -

1. - Put in a pre-open sell order way below your SL (say $1.50) to ensure your shares get sold at the opening price?

2. - Sit out the panic sell off at open, wait and see if the price bounces during the day (ie-  today opened at $2.43 but now at about $ 2.56)

3. - Wait a couple of days to see if there is significant rebound (or maybe dead-cat bounce)?

Or is there any other options?


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