Stop Loss or not?

[Kylie9090]

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.

 

[pixel]

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:

1. 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.
2. 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.

 

[galumay]

Hi Kylie9090, the ASF has a good search function, the search field is in the top right hand corner under the banner.

There is a recent and detailed discussion on just this topic,

https://www.aussiestockforums.com/forums/showthread.php?t=26550&highlight=stop+loss

 

[StockTrader010]

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.

If you're a long term investor, stop loss orders are not necassary.
When using leverage, I think it's best to set a stop less

 

[tech/a]

If you're a long term investor, stop loss orders are not necassary.
When using leverage, I think it's best to set a stop less

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!---

 

[bbi1]

If you have a stop loss, your stop loss order doesn't show up in the market depth, correct?