Setting your stop loss levels: Trigger price compared to sell?

[mattryanshares]

How do you choose at what level to set your stop loss at? How far is your sell limit below your trigger limit?

My situation is i all ready have a bit of profit in the shares and i dont want to cash out at the slightest fluctuation either. So i only really selling if the stock starts to drop dramatically.

So for example if you bought a stock at .080 and it was now at .110 what whould you set it at?
Im thinking
trigger limit at .095
sell limit at .091

my reasoning being at .095 the order will go in to sell at .091 and worst case ill get .091 or most likely .095 to .091???

What are your thoughts? Not looking for or expecting financial advise, just looking to hear how and why triggers are set in different circumstances.

Thanks in advance.

 

[Market Depth]

Re: Setting your stop loss levels, whats your thinking? Trigger price compared to sel

For me Matt it depends on what type of trade I've entered into in the first place. If it is a very short term trade, then a 'High Point Reversal' bar on a chart is a good trigger for me, I'll sell at the open the next day.

For an 'Intraday' trade, then all I care about is buying or selling pressure, it's all about 'Feel' rather than any type of indicator.

For a trend trade, then support and resistance levels play a bigger role in my exit thinking, this is where the 'Head Fake' can come into play.

Longer term investment trades, then a simple 200 day moving average works quite well for me, although in this type of trade I may not sell my entire holding.

I also never use 'In the market' stop losses. I only use a 'Closing Price' stop. The reason being is that from time to time you always get some silly git that just chucks in a few shares at a cheaper price and you get stopped out. Then the price just rolls back up and continues on it's merry way. I HATE THAT! The 'Smart Money' closes the price, so that's what I look for.

Your working out that selling is indeed difficult.