Stop Loss

• 22 August 2005

• #1

K

kerosam

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hi guys,

I'm new in this forum and ASX. Just started buying shares this year.

I use etrade to buy and sell my shares. But it seems that etrade hasn't got a stop-loss option. is that option not offered by etrade or i'm missing out here? if etrade hasn't got a stop-loss option, what are my alternatives?

 

• 22 August 2005

• #2

Joe Blow

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Hi kerosam,

I use Etrade too. They have something similar to a stop loss but call it a 'Conditional Order'. Basically, you can buy or sell stocks when certain price or volume conditions that you specify have been met. They have basic, intermediate and advanced level conditional orders that get increasingly more complex, so you may want to look into it rather closely.

To find out all about it, click on the 'Trading' tab after you log in to Etrade and you will see 'Conditional Orders' in the menu to the left of your screen.

 

• 23 August 2005

• #3

GreatPig

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Kerosam,

Be aware that placing stop-loss orders is generally more expensive than doing it yourself.

GP

 

• 23 August 2005

• #4

tech/a

No Ordinary Duck

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If your concerned about stops---IE they are set so close that you cant execute them without being glued to a screen--then I would say that your over stretching your comfort zone.
OR Trading parcel sizes which are just to big.
OR perhaps you should consider something like futures where you can place a myrid of stops.
OR your trading in a timeframe not suited to your situation---you work fulltime and cant watch a screen and execute trades during the day.

I would alter my timeframe or decrease my parcel size so that slippage in execution was/is less of an issue.---a lot less stress.

 

• 29 September 2005

• #5

T

The Estimator

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You guys are often talking about trailing stop losses. I though't you meant an automated sytem. After reading the last couple of posts I realise maybe you graphing a trailing stop loss but you still push the button manually?

Also Kerosam I'm trying out ETrade now and I notice you can get sms alerts when stocks meet certain conditions. Maybe you could use that as an indicator of when to get out rather than using the automated sell system.

John

 

• 29 September 2005

• #6

tech/a

No Ordinary Duck

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Big difference between a trailing stop and an intitial stop loss.

 

• 29 September 2005

• #7

T

The Estimator

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Yeah but is the trailing stop still an automated thing or is it a trailing line that indicates to you guys when to sell?

 

• 29 September 2005

• #8

tech/a

No Ordinary Duck

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I personally dont use trailing stops but I'm mostly a long term trader.

Trailing stops are commonly used by shorter term traders to lock down profit.
I dont know of any automated trailing stops,it would end up being the exit if it was.

 

• 29 September 2005

• #9

I

It's Snake Pliskin

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The Estimator said:

Yeah but is the trailing stop still an automated thing or is it a trailing line that indicates to you guys when to sell?

Click to expand...

I believe some brokers provide the automated trailing stop loss - though it may cost you in brokerage. It can be manual if you like to set the conditions and once hit you push the button yourself, just as you do when you decide to buy or sell. Basically it is trailing the rising price to lock in profits.