Hello,
Just after the opinions of people on using stop losses? Do you use a stop loss, or do you just watch and exit when needed? Also, if you do use a stop loss, do you use just the normal one or a guaranteed stop loss.
Hello,
Just after the opinions of people on using stop losses? Do you use a stop loss, or do you just watch and exit when needed? Also, if you do use a stop loss, do you use just the normal one or a guaranteed stop loss.
From the second part of your Q, I take it you refer to automatic s/l as offered by some online brokers.
If that's the case, I don't use any automatic feature, whether guaranteed or not.
I have two reasons:
Knowing the position and size of clients' stop levels can tempt an employee to start a little stop raid. All it takes is a strategic sell-down. Even a short sale can do the trick. That triggers the first s/l sale, followed by an avalanche. They will then calmly sit at the bottom and mop up.
My decision whether to sell or not depends on the time of day: I use a trailing stop based on the price dropping outside a "Volatility Envelope" and sell on a red "Close Below". That eliminates the worst short-term swings, especially single share "fakes" or raids outlined above.
However, I don't solely rely on stop loss, but I also have profit stops at certain levels, where I see resistance or high-probability indications of price turns. In such cases, I don't wait for the price to fall lower and hit a stop.
Hello,
Just after the opinions of people on using stop losses? Do you use a stop loss, or do you just watch and exit when needed? Also, if you do use a stop loss, do you use just the normal one or a guaranteed stop loss.
They may not be necessary to a lot of types of traders
but do trader's or investors know whether they will improve their trading if they had a method which incorporated the use of stop losses?
Trading with or without should be discarded until you know!---